U.S. Dollar Is Flat At The Start Of The Week: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Stabilizes After Pullback

U.S. Dollar Index is mostly flat as traders wait for additional catalysts. Treasury yields are moving lower, but this move does not put material pressure on the American currency.

The nearest support level for U.S. Dollar Index is located in the 103.20 – 103.40 range. A successful test of this level will push U.S. Dollar Index towards the next support at 102.00 – 102.20.

EUR/USD Settled Below 1.0850

EUR/USD is also flat as traders focus on the better-than-expected Industrial Production report from Germany. The report indicated that Germany’s Industrial Production increased by +2% month-over-month in January, compared to analyst forecast of +1.5%.

A move above the 1.0850 level will push EUR/USD towards the nearest resistance at 1.0920 – 1.0935. RSI has recently moved into the moderate territory, so there is plenty of room to gain additional momentum in the near term.

GBP/USD Tested Resistance At 1.2935 – 1.2950

GBP/USD made an attempt to settle above the strong resistance at 1.2935 – 1.2950 but lost momentum and pulled back below the 1.2900 level.

If GBP/USD declines below the recent lows near 1.2875, it will move towards the support level, which is located in the 1.2810 – 1.2830 range.

USD/CAD Tests New Highs

USD/CAD gains ground as traders stay focused on the tariff drama. Ontario has raised power prices by 25% for Michigan, New York, and Minnesota, raising worries about the continuation of the trade war.

In case USD/CAD settles above the 1.4450 level, it will move towards the nearest resistance level at 1.4485 – 1.4500.

USD/JPY Is Losing Ground As Treasury Yields Fall

USD/JPY tests support at 146.50 – 147.00 as traders react to falling Treasury yields.

If this test is successful, USD/JPY will move towards the next support at 143.50 – 144.00. On the upside, a move above the 148.00 level will open the way to the test of the resistance at 149.00 – 149.50.

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