U.S. Dollar Is Losing Ground As Traders Wait For Tariff News: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulls Back

U.S. Dollar Index is losing ground as traders focus on tariff news. Recent rumors indicate that China will be hit with an additional tariff.

In case U.S. Dollar Index settles below the 103.00 level, it will move towards the nearest support level, which is located in the 101.70 – 101.90 range.

EUR/USD Gained Some Ground In Choppy Trading

EUR/USD gained some ground as traders waited for tariff news. From a big picture point of view, traders are not ready for big moves ahead of the press conference, which will reveal the tariff policy.

A move below the 50 MA at 1.0888 will push EUR/USD towards the support level at 1.0750 – 1.0765.

GBP/USD Attempts To Rebound

GBP/USD is trying to rebound after yesterday’s strong sell-off. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

In case GBP/USD manages to settle above the resistance level at 1.2780 – 1.2800, it will head towards the next resistance at 1.2850 – 1.2870.

USD/CAD Is Losing Ground As Demand For Commodity-Related Currencies Is Rising

USD/CAD pulled back as demand for commodity-related currencies increased. Most likely, USD/CAD will be sensitive to tariff news as they will have a material impact on commodity markets.

A move above the 1.4200 level will push USD/CAD towards the 50 MA at 1.4260.

USD/JPY Retreats As Treasury Yields Pull Back

USD/JPY tests support at 146.50 – 147.00 as Treasury yields pull back. The yield of 2-year Treasuries declined towards the 3.75% level, while the yield of 10-year Treasuries settled below 4.20%.

A successful test of the support at 146.50 – 147.00 will open the way to the test of the next support level at 143.50 – 144.00.

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