U.S. Dollar Rebounds As Traders React To Powell’s Comments: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Rebounds After Sell-Off

U.S. Dollar Index rebounds as traders react to Powell’s comments and strong Non Farm Payrolls report. Fed Chair said that the impact of tariffs would be higher than previously expected. He added that it was too early to discuss the dynamics of federal funds rate as Fed needed more time to evaluate the situation.

Currently, U.S. Dollar Index is trying to settle above the 102.70 level. In case this attempt is successful, it will head towards the nearest resistance level at 103.20 – 103.40.

EUR/USD Pulled Back Below 1.1000

EUR/USD pulls back as traders focus on the better-than-expected Non Farm Payrolls report from the U.S. The report showed that the economy added 228,000 jobs in March, compared to analyst forecast of 135,000.

If EUR/USD stays below the 1.1000 level, it will head towards the support level at 1.0920 – 1.0935.

GBP/USD Is Under Strong Pressure

GBP/USD gained strong downside momentum and pulled back below the support at 1.2935 – 1.2950. Currently, GBP/USD is trying to settle below the 1.2900 level.

In case this attempt is successful, GBP/USD will move towards the next support level, which is located in the 1.2860 – 1.2875 range.

USD/CAD Gains Ground As Oil Markets Dive 7%

USD/CAD is trying to settle above the 1.4200 level as traders focus on the oil market crash. Oil prices are down by 7% as China imposed 34% tariffs on U.S. goods.

If USD/CAD manages to settle above 1.4200, it will move towards the 50 MA at 1.4274.

USD/JPY Climbed Back Above The 146.00 Level

USD/JPY is swinging between gains and losses as traders evaluate the impact of tariffs and focus on falling Treasury yields.

A move above the resistance level at 146.50 – 147.00 will open the way to the test of the next resistance at 149.00 – 149.50.

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