EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Tests New Highs

Key Insights

• EUR/USD settled below 1.0800 as Treasury yields continue to move higher. 
• USD/CAD rebounded above 1.3500 as oil markets pulled back after yesterday’s rally. 
• USD/JPY tested new highs as traders remained focused on rising Treasury yields. 

U.S. Dollar

U.S. Dollar Index rallies as traders focus on rising Treasury yields. Initial Jobless Claims declined from 264,000 to 242,000, providing additional support to the American currency.

In case the U.S. Dollar Index settles above the 103.50 level, it will head towards the next resistance at 103.75. A successful test of the resistance at 103.75 will push the U.S. Dollar Index towards the 104.10 level.

R1:103.50 – R2:103.75 – R3:104.10

S1:103.25 – S2:103.00 – S3:102.80

EUR/USD

EUR/USD remains under pressure as traders stay focused on the general strength of the U.S. dollar. It looks that recent comments from U.S. President Joe Biden calmed markets, which was bullish for the U.S. dollar.

A move below the support at 1.0760 will push EUR/USD towards the next support level at 1.0730. In case EUR/USD declines below this level, it will head towards the support at 1.0710.

R1:1.0790 – R2:1.0820 – R3:1.0840

S1:1.0760 – S2:1.0730 – S3:1.0710

GBP/USD

GBP/USD tested new lows as the pullback continued. The market sentiment could be tested soon as the British pound is moving closer to the strong support area.

A successful test of the support at 1.2410 will push GBP/USD towards the next support level at 1.2370. If GBP/USD declines below 1.2370, it will head towards the support at 1.2345.

R1:1.2440 – R2:1.2460 – R3:1.2500

S1:1.2410 – S2:1.2370 – S3:1.2345

USD/CAD

USD/CAD rebounded as WTI oil pulled back after yesterday’s rally. Other commodity-related currencies have also moved lower in today’s trading session.

If USD/CAD manages to settle above the resistance at 1.3530, it will head towards the next resistance level at 1.3565. A successful test of this level will open the way to the test of the resistance at 1.3600.

R1:1.3530 – R2:1.3565 – R3:1.3600

S1:1.3490 – S2:1.3450 – S3:1.3410

USD/JPY

USD/JPY tested new highs as the yield of 2-year Treasuries climbed above the 4.20% level. Rising Treasury yields will remain the key bullish catalyst for USD/JPY due to BoJ’s ultra-dovish policy.

If USD/JPY manages to settle above 138.70, it will head towards the resistance at 139.60. A move above this level will push USD/JPY towards the resistance at 140.50.

R1:138.70 – R2:139.60 – R3:140.50

S1:137.50 – S2:137.00 – S3:136.50

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