U.S. Dollar Pulls Back Amid Falling Treasury Yields: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Losing Ground At The Start Of The Week

U.S. Dollar Index pulled back as traders reacted to the sell-off in U.S. equity markets and focused on economic data. Treasury yields moved lower, which was bearish for the U.S. dollar.

The nearest support level for U.S. Dollar Index is located in the 106.80 – 107.00 range. A successful test of this level will open the way to the test of the next support level at 105.50 – 105.70.

EUR/USD Tests The 1.0500 Level

EUR/USD gained some ground as traders focused on the better-than-expected Ifo Business Climate report from Germany. The report indicated that Ifo Business Climate improved from 84.7 in December to 85.1 in January, compared to analyst forecast of 84.7.

If EUR/USD manages to settle above the resistance at 1.0515 – 1.0530, it will move towards the next resistance level, which is located in the 1.0630 – 1.0650 range.

GBP/USD Is Mostly Flat In Volatile Trading

GBP/USD is swinging between gains and losses as traders wait for additional catalysts.

From the technical point of view, GBP/USD is trying to settle above the resistance at 1.2485 – 1.2500. In case this attempt is successful, it will head towards the next resistance level at 1.2585 – 1.2600.

USD/CAD Gains Ground As Commodity Markets Retreat

USD/CAD is moving higher as traders focus on the strong pullback in commodity markets. Other commodity-related currencies are also moving lower in today’s trading session.

If USD/CAD stays above the 50 MA at 1.4376, it will move towards the resistance level at 1.4540 – 1.4560.

USD/JPY Tests Support At 153.50 – 154.00

USD/JPY tests new lows as traders react to the pullback in Treasury yields. The yield of 2-year Treasuries moved towards the 4.20% level, while the yield of 10-year Treasuries declined below 4.55%.

A move below the support level at 153.50 – 154.00 will open the way to the test of the next support, which is located in the 151.50 – 152.00 range.

For a look at all of today’s economic events, check out our economic calendar.