U.S. Dollar Gains Ground After Christmas: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

Key Points:

• GBP/USD is heading towards the 1.2500 level amid worries about the health of the UK economy.

• USD/CAD climbed above the 1.4400 level as demand for commodity-related currencies declined.

• USD/JPY attempts to settle above the 158.00 level as Treasury yields rise. ### In this article:

• EUR/USD

+0.18%

• GBP/USD

-0.23%

• USD/CAD

+0.39%

• USD/JPY

+0.59%

U.S. Dollar Gained Some Ground In Quiet Trading

DXY 261224 4h Chart U.S. Dollar Index gains some ground as traders react to the Initial Jobless Claims report. The report showed that 219,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 224,000.

The technical picture remains unchanged as U.S. Dollar Index is stuck below the resistance at 108.30 – 108.50. In case U.S. Dollar Index climbs above the 108.50 level, it will head towards the next resistance level at 109.40 – 109.60.

EUR/USD Attempts To Rebound From Recent Lows

EUR/USD 261224 4h Chart EUR/USD moved higher in absence of strong catalysts. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

In case EUR/USD stays above the 1.0400 level, it will move towards the nearest resistance level, which is located in the 1.0435 – 1.0450 range. On the support side, a move below 1.0385 will open the way to the test of the support at 1.0330 – 1.0345.

GBP/USD Tested The 1.2500 Level

GBP/USD 261224 4h Chart GBP/USD is moving towards recent lows as traders focus on the weakness of the UK economy. The recent economic reports missed analyst expectations, which was bearish for the pound.

GBP/USD needs to settle below the nearest support at 1.2475 – 1.2490 to have a chance to gain additional downside momentum in the near term.

USD/CAD Moved Back Above The 1.4400 Level

USD/CAD 261224 4h Chart USD/CAD gains ground amid falling demand for commodity-related currencies. Rising gold markets did not provide support to the Canadian dollar.

If USD/CAD settles above the 1.4450 level, it will head towards the resistance level at 1.4540 – 1.4560.

USD/JPY Tries To Settle Above 158.00

USD/JPY 261224 4h Chart USD/JPY tests new highs as traders stay focused on rising Treasury yields. The recent changes in Fed policy outlook serve as a strong bullish catalyst for USD/JPY.

The nearest resistance level for USD/JPY is located in the 158.50 – 159.00 range. A move above the 159.00 level will push USD/JPY towards the next resistance at 161.50 – 162.00.

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