U.S. Dollar Tests Multi-Month Highs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs As Traders Stay Bullish

U.S. Dollar Index gains ground as Trump rally continues. There are no important economic reports scheduled to be released in the U.S. today, so traders will stay focused on general market sentiment.

In case U.S. Dollar Index stays above the 105.50 level, it will head towards the nearest resistance, which is located in the 106.00 – 106.15 range.

EUR/USD Tests Support At 1.0650 – 1.0670 As Traders Focus On Tariff Threat

EUR/USD tests new lows as traders bet that Donald Trump would impose tarrifs on European products as the EU does not buy enough U.S. exports.

Currently, EUR/USD is trying to settle below the support at 1.0650 – 1.0670. In case this attempt is successful, EUR/USD will move towards the next support level at 1.0525 – 1.0540.

GBP/USD Remains Under Pressure At The Start Of The Week

GBP/USD is moving lower as traders focus on general strength of the American currency.

A move below the support at 1.2870 – 1.2880 will open the way to the test of the next support level at 1.2675 – 1.2700.

USD/CAD Is Mostly Flat Despite Sell-Off In Commodity Markets

USD/CAD made an attempt to settle above the resistance at 1.3930 – 1.3950 but lost momentum and pulled back. Interestingly, traders ignored the strong sell-off in commodity markets, which is bearish for commodity-related currencies.

In case USD/CAD pulls back below the 50 MA at 1.3906, it will head towards the nearest support level at 1.3800 – 1.3815.

USD/JPY Attempts To Settle Above 154.00

USD/JPY is trying to settle above the resistance at 153.00 – 153.50 as traders bet that BoJ will maintain its ultra-dovish policy.

If USD/JPY climbs above the 154.00 level, it will move towards the next resistance level, which is located in the 155.00 – 155.50 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

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