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

U.S. Dollar Gains Ground At The Start Of The Week

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

The nearest resistance level for U.S. Dollar Index is located in the 103.40 – 103.60 range. If U.S. Dollar Index climbs above the 103.60 level, it will head towards the next resistance level at 104.60 – 104.80.

EUR/USD Tests Support At 1.0900 – 1.0915

EUR/USD tests support at 1.0900 – 1.0915 as pullback continues. Traders focus on the recent changes in Fed policy outlook and bet that Fed will not cut rates aggressively after the initial 50 bps cut.

A move below the support level at 1.0900 – 1.0915 will push EUR/USD towards the next support level at 1.0765 – 1.0780.

GBP/USD Is Moving Towards 1.3000

GBP/USD remains under pressure amid lack of positive catalysts. At this point, the British pound needs material catalysts to have a chance to gain sustainable momentum.

If GBP/USD settles below the support level at 1.3000 – 1.3020, it will move towards the next support at 1.2870 – 1.2880.

USD/CAD Tests New Highs

USD/CAD tests new highs as traders focus on the pullback in the oil markets, which was triggered by OPEC monthly report. Oil traders are worried about the strength of demand, which is bearish for commodity-related currencies.

A successful test of the resistance at 1.3800 – 1.3815 will push USD/CAD towards the next resistance level at 1.3930 – 1.3950.

USD/JPY Gains Ground Amid Rising Treasury Yields

USD/JPY is trying to climb above the 150.00 level, supported by rising Treasury yields.

If USD/JPY manages to settle above 150.00, it will gain additional upside momentum and move towards the resistance at 153.00 – 153.50.

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