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

U.S. Dollar Index Is Heading Towards 103.00

U.S. Dollar Index gains ground as traders prepare for Fed Minutes, which will be released soon. Treasury yields are moving higher, providing additional support to the American currency.

In case U.S. Dollar Index climbs above the 103.30 level, it will head towards the next resistance level at 103.40 – 103.60.

EUR/USD Tests New Lows

EUR/USD tests new lows as traders focus on the recent changes in Fed policy outlook. The U.S. economy stays strong, so the Fed may be less dovish than previously expected.

A move below the 1.0950 level opens the way to the test of the support at 1.0900 – 1.0915. RSI has recently moved back into the oversold territory, but there is enough room to gain additional downside momentum in the near term.

GBP/USD Remains Under Pressure

GBP/USD is losing ground as pullback continues amid lack of positive catalysts for the British pound.

If GBP/USD settles below the 1.3050 level, it will head towards the nearest support level, which is located in the 1.3000 – 1.3020 range.

USD/CAD Gains Ground As Commodity Markets Pull Back

USD/CAD tests new highs as traders react to the strong pullback in commodity markets. Other commodity-related currencies have also found themselves under significant pressure in today’s trading session.

From the technical point of view, USD/CAD needs to settle above the resistance at 1.3700 – 1.3715 to gain additional upside momentum. It should be noted that RSI is in the extremely overbought territory, so the risks of a pullback are increasing.

USD/JPY Is Moving Higher As Treasury Yields Rise

USD/JPY is moving towards the resistance at 149.50 – 150.00 as traders focus on rising Treasury yields.

A successful test of the resistance at 149.50 – 150.00 will push USD/JPY towards the next resistance level at 153.00 – 153.50.

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