U.S. Dollar Dives After Trump Tariffs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Under Strong Pressure

U.S. Dollar Index suffered a strong sell-off as traders reacted to Trump tariffs. Traders fear that trade wars will put significant pressure on the American economy and force the Fed to cut rates aggressively.

Currently, U.S. Dollar Index is trying to settle below the support at 101.70 – 101.90. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 100.20 – 100.40 range.

EUR/USD Climbed Above The 1.1000 Level

EUR/USD pulled back from session highs as traders took some profits off the table after the strong rally.

RSI is in the overbought territory, so the risks of a pullback are increasing. In case EUR/USD settles back below the 1.1040 level, it will move towards the 1.1000 level.

GBP/USD Tested Resistance At 1.3180 – 1.3200

GBP/USD has also moved away from session highs on profit-taking. In the near term, traders will stay focused on tariff drama, which will serve as the key catalyst for GBP/USD.

From the technical point of view, GBP/USD needs to settle above the resistance at 1.3180 – 1.3200 to gain additional upside momentum in the near term.

USD/CAD Tests Support At 1.4060 – 1.4080

USD/CAD tests support at 1.4060 – 1.4080 as traders react to tariffs and focus on general weakness of the U.S. dollar.

A successful test of this level will open the way to the test of the next support level at 1.3930 – 1.3950.

USD/JPY Retreats As Treasury Yields Fall

USD/JPY tested new lows as Treasury yields declined. The yield of 2-year Treasuries settled below the 3.75% level, while the yield of 10-year Treasuries pulled back towards 4.05%.

In case USD/JPY settles below the support at 146.50 – 147.00, it will head towards the next support level at 143.50 – 144.00.

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