U.S. Dollar Index gains ground as traders react to the PCE Price Index report, which showed that PCE Price Index increased from 4.2% in March to 4.4% in April, compared to analyst consensus of 4.1%. PCE Price Index is Fed’s favorite inflation gauge, so traders bet that Fed will be forced to raise rates this summer.
In case the U.S. Dollar Index settles above the resistance at 104.45, it will move towards the next resistance level at 104.75. On the support side, a move below 104.10 will push the U.S. Dollar Index towards the support level at 103.75.
R1:104.45 – R2:104.75 – R3:105.10
S1:104.10 – S2:103.75 – S3:103.50
EUR/USD
EUR/USD remains under pressure as traders prepare for a more hawkish Fed after the release of the PCE Price Index report.
A successful test of the support at 1.0700 will open the way to the test of the next support level at 1.0670. In case EUR/USD declines below this level, it will move towards the support at 1.0630.
R1:1.0730 – R2:1.0760 – R3:1.0790
S1:1.0700 – S2:1.0670 – S3:1.0630
GBP/USD
GBP/USD made an attempt to rebound but lost momentum and pulled back as Treasury yields continued to move higher.
If GBP/USD declines below the support at 1.2300, it will move towards the next support level at 1.2275. A successful test of this level will push GBP/USD towards the support at 1.2240.
R1:1.2345 – R2:1.2370 – R3:1.2410
S1:1.2300 – S2:1.2275 – S3:1.2240
USD/CAD
USD/CAD pulled back as oil markets and precious metals rebounded after the recent sell-off.
In case USD/CAD settles below the support at 1.3600, it will move towards the next support level at 1.3565. A move below 1.3565 will open the way to the test of the support at 1.3530.
R1:1.3640 – R2:1.3665 – R3:1.3695
S1:1.3600 – S2:1.3565 – S3:1.3530
USD/JPY
USD/JPY tests new highs as traders remain focused on rising Treasury yields. The yield of 2-year Treasuries has recently managed to settle above the 4.60% level and continues to move higher.
A successful test of the resistance at 140.50 will push USD/JPY towards the next resistance level at 141.60. If USD/JPY climbs above this level, it will move towards the next resistance at 142.25.
R1:140.50 – R2:141.60 – R3:142.25
S1:139.60 – S2:138.70 – S3:137.50
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