EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Tests Multi-Week Highs

Key Insights

• EUR/USD pulled back towards the 1.0850 level as demand for riskier assets declined. 
• GBP/USD moved towards 1.2450 as the pullback continued. 
• USD/CAD tested new highs as WTI oil declined towards the $70 level. 

U.S. Dollar

U.S. Dollar Index gains ground amid rising demand for safe-haven assets after the release of the weaker-than-expected Michigan Consumer Sentiment report.

In case the U.S. Dollar Index manages to settle above 102.65, it will head towards the next resistance level at 102.80. A move above this level will open the way to the test of the resistance at 103.00.

R1:102.65 – R2:102.80 – R3:103.00

S1:102.30 – S2:102.00 – S3:101.80

EUR/USD

EUR/USD remains under pressure as traders focus on the general strength of the U.S. dollar. At this point, the pullback did not turn into a panic, but EUR/USD managed to gain significant downside momentum.

A move below the support at 1.0840 will push EUR/USD towards the next support level at 1.0820. If EUR/USD declines below 1.0820, it will head towards the support at 1.0790.

R1:1.0880 – R2:1.0910 – R3:1.0940

S1:1.0840 – S2:1.0820 – S3:1.0790

GBP/USD

GBP/USD moved towards the 1.2450 level as the pullback continued. Today, traders focused on the UK GDP report for March. The report indicated that UK GDP declined by 0.3% month-over-month, compared to analyst consensus of 0%.

If GBP/USD settles below the support at 1.2460, it will head towards the next support level at 1.2440. A move below this level will push GBP/USD towards the support at 1.2410.

R1:1.2500 – R2:1.2525 – R3:1.2550

S1:1.2460 – S2:1.2440 – S3:1.2410

USD/CAD

USD/CAD continues to move higher as traders react to the pullback in the oil markets. WTI oil has recently made an attempt to settle below the $70 level amid recession worries.

If USD/CAD settles above the resistance at 1.3565, it will head towards the next resistance level at 1.3600. A move above this level will push USD/CAD towards the resistance at 1.3640.

R1:1.3565 – R2:1.3600 – R3:1.3640

S1:1.3530 – S2:1.3490 – S3:1.3450

USD/JPY

USD/JPY gained upside momentum as Treasury yields rebounded after the recent pullback.

A move above the resistance at 135.75 will push USD/JPY towards the next resistance level at 136.50. In case USD/JPY manages to settle above this level, it will head towards the next resistance at 137.00.

R1:135.75 – R2:136.50 – R3:137.00

S1:135.10 – S2:134.50 – S3:134.00

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