U.S. Dollar Index rallied as Donald Trump won the U.S. elections. Treasury yields jumped as traders bet on a less dovish Fed after Trump’s victory. The yield of 2-year Treasuries settled above the 4.28% level, while the yield of 10-year Treasuries moved above 4.46%.
In case U.S. Dollar Index climbs above the recent highs at 105.44, it will move towards the next resistance, which is located in the 106.00 – 106.15 range.
EUR/USD pulled back as traders focused on the results of U.S. elections. Traders worry that Trump may start a trade war with the EU, which will be bearish for the European currency.
A move below the 1.0700 level will open the way to the test of the support level at 1.0650 – 1.0670.
GBP/USD is trying to settle below the support at 1.2870 – 1.2880 as traders react to Trump’s victory.
In case this attempt is successful, GBP/USD will move towards the next support level, which is located in the 1.2785 – 1.2800 range.
USD/CAD gained ground as traders focused on the strong sell-off in precious metals markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.
A move above the 1.3950 level will push USD/CAD towards the 1.4000 level. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum.
USD/JPY tested new highs as traders reacted to rising Treasury yields. Fed policy outlook is a key catalyst for USD/JPY as BoJ maintains its ultra-dovish policy.
From the technical point of view, USD/JPY is moving towards the resistance at 155.00 – 155.50.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.