U.S. Dollar Pulls Back As Traders Focus On Powell’s Testimony: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Lower As Traders React To Powell’s Comments

U.S. Dollar Index is losing some ground as traders react to Powell’s testimony. He noted that if inflation fell more quickly than anticipated or the labor market weakened unexpectedly, the Fed would ease its policy accordingly.

In case U.S. Dollar Index pulls back below the 108.00 level, it will head towards the next support level, which is located in the 106.80 – 107.00 range.

EUR/USD Tests Resistance At 1.0335 – 1.0350

EUR/USD tests resisance at 1.0335 – 1.0350 as traders react to comments of ECB’s Kazaks, who said that U.S. – EU talks could soften the blow of tariffs.

If EUR/USD manages to settle above the 1.0350 level, it will head towards the next resistance level, which is located in the 1.0420 – 1.0435 range.

GBP/USD Climbed Above The 1.2400 Level

GBP/USD is moving higher as traders bet that the impact of tariffs could be less significant than previously expected.

Currently, GBP/USD is trying to settle above the 50 MA at 1.2419. In case this attempt is successful, GBP/USD will head towards the nearest resistance level, which is located in the 1.2485 – 1.2500 range.

USD/CAD Attempts To Settle Below 1.4300

USD/CAD is losing some ground despite the pullback in precious metals markets. Other commodity-related currencies are also moving higher in today’s trading session.

In case USD/CAD manages to settle below the 1.4300 level, it will head towards the recent lows at 1.4270. A move below this level will open the way to the test of the support at 1.4180 – 1.4200.

USD/JPY Gains Ground As Treasury Yields Rise

USD/JPY is moving higher as traders focus on rising Treasury yields. The yield of 10-year Treasuries climbed above the 4.50% level, providing support to USD/JPY.

If USD/JPY stays above the 152.00 level, it will head towards the nearest resistance level at 153.50 – 154.00.

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