EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Pulls Back Despite Rising Treasury Yields

Key Insights

• EUR/USD is trying to rebound despite weak Euro Area Industrial Production report. 
• GBP/USD managed to settle back above the 1.2500 level. 
• USD/JPY settled above 136 as the yield of 2-year Treasuries tested the 4.00% level.

U.S. Dollar

U.S. Dollar Index is losing ground despite relatively hawkish comments from Fed’s Kashkari and Bostic. Traders take some profits off the table after the recent rally.

If the U.S. Dollar Index settles below the support at 102.30, it will head towards the next support level at 102.00. A successful test of this level will open the way to the test of the support at 101.80

R1:102.65 – R2:102.80 – R3:103.00

S1:102.30 – S2:102.00 – S3:101.80

EUR/USD

EUR/USD is trying to rebound after the recent pullback. Today, traders focused on the Euro Area Industrial Production report. The report indicated that Euro Area Industrial Production declined by 4.1% month-over-month in March, compared to analyst consensus of -2.5%.

If EUR/USD settles back above the 1.0880 level, it will head towards the resistance at 1.0910. A move above 1.0910 will push EUR/USD towards the resistance at 1.0940.

R1:1.0880 – R2:1.0910 – R3:1.0940

S1:1.0840 – S2:1.0820 – S3:1.0790

GBP/USD

GBP/USD managed to rebound after Friday’s sell-off despite rising Treasury yields. There are no important economic reports scheduled to be released in the UK today, so traders will stay focused on general market sentiment.

If GBP/USD climbs above 1.2525, it will head towards the resistance at 1.2550. On the support side, a move below the support at 1.2500 will push GBP/USD towards the next support at 1.2460.

R1:1.2525 – R2:1.2550 – R3:1.2590

S1:1.2500 – S2:1.2460 – S3:1.2440

USD/CAD

USD/CAD pulls back as oil markets rebound from recent lows. WTI oil found support near the $70 level and moved back above $71.

In case USD/CAD declines below the support at 1.3490, it will head towards the next support level at 1.3450. A move below this level will open the way to the test of the support at 1.3410.

R1:1.3530 – R2:1.3565 – R3:1.3600

S1:1.3490 – S2:1.3450 – S3:1.3410

USD/JPY

USD/JPY continues to move higher as the yield of 2-year Treasuries is trying to setlte above the 4.00% level. In case this attempt is successful, USD/JPY may get more support.

A move above the resistance at 136.50 will push USD/JPY towards the next resistance level at 137.00. On the support side, a successful test of the 135.75 level will open the way to the test of the next support at 135.10.

R1:136.50 – R2:137.00 – R3:137.50

S1:135.75 – S2:135.10 – S3:134.50

For a look at all of today’s economic events, check out our economic calendar.