U.S. Dollar Weakens as Traders Eye Pullback in Treasury Yields

U.S. Dollar Weakens as Traders Eye Pullback in Treasury Yields

The U.S. Dollar Index (DXY) is experiencing a decline as traders shift their focus towards the pullback in Treasury yields. With the Relative Strength Index (RSI) settling in the oversold territory, there is an increasing possibility of a rebound. However, the U.S. Dollar Index still has a reasonable chance of testing the nearest support level at 100.50 – 100.80.

EUR/USD is seeing an upward trend as traders pay attention to the general weakness of the U.S. dollar. In the event that EUR/USD successfully establishes itself above the resistance level at 1.1125 – 1.1150, it is likely to head towards the next resistance level at 1.1250 – 1.1275.

GBP/USD Moves Higher

Supported by falling Treasury yields, GBP/USD has also experienced an upward movement. Traders are speculating that the Federal Reserve will initiate rate cuts in March 2024. A move above the 1.2800 level could further propel GBP/USD towards the nearest resistance level at 1.2820 – 1.2850.

USD/CAD Holds Steady at 1.3200

USD/CAD has settled near the 1.3200 level as oil markets witnessed a pullback after a rally the previous day. If USD/CAD manages to settle back above the 1.3200 level, it is expected to head towards the nearest resistance level in the 1.3275 – 1.3300 range. The RSI is currently in the oversold territory, suggesting there is room for additional upside momentum.

USD/JPY Pullback Continues

USD/JPY has experienced a pullback as the U.S. dollar tested new lows against a wide range of currencies. The nearest support level for USD/JPY is situated in the 141.00 – 141.50 range, a level that has been tested multiple times and proved its strength. It is likely that USD/JPY will require additional catalysts to settle below 141.00.

For a comprehensive overview of today’s economic events, it is advisable to refer to our economic calendar. This will provide valuable insights into the various factors impacting global financial markets.

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