Summary of USD Movement and Technical Analysis

Date: March 16, 2026

Author: Greg Michalowski

Overview

The U.S. dollar (USD) is experiencing a decline as risk-on sentiment prevails in the trading environment. This shift is attributed to easing geopolitical tensions, which have led to a rotation of capital back into risk assets. Concurrently, U.S. stock markets are showing positive performance, with the S&P 500 index rising by approximately 72 points. Additionally, U.S. Treasury yields are decreasing, with the 10-year yield down about 5 basis points. Oil prices have also fallen by around 1.6%, alleviating some inflation concerns that had previously supported the dollar.

Technical Analysis of Major Currency Pairs

The article provides a technical analysis of three major currency pairs: EURUSD, USDJPY, and GBPUSD.

EURUSD

The EURUSD pair has increased by 0.55%, reflecting the weaker dollar. It is approaching key resistance levels established in November, specifically at 1.1468 and 1.1491. The current high for the day has reached 1.1486, indicating a potential bullish momentum if the pair can sustain a move above these resistance levels.

USDJPY

The USDJPY pair has decreased by approximately 0.38%, falling below the January highs that were briefly surpassed last week. The resistance levels are now identified at 159.447 and 159.218. Remaining below these levels suggests that sellers are in control, shifting focus back to lower support targets.

GBPUSD

The GBPUSD pair has risen around 0.44%, reclaiming recent swing lows at 1.3252 and 1.3282. With these levels regained, the next target for upward movement is near the 1.3300 area, where traders will assess if bullish momentum can continue.

Key Technical Levels to Watch

• EURUSD: Resistance at 1.1468–1.1491; a break above opens further upside.
• USDJPY: Resistance at 159.218–159.447; staying below favors sellers.
• GBPUSD: Support at 1.3252–1.3282; upside target at 1.3300.

Conclusion

The article emphasizes the importance of monitoring these technical levels as the market reacts to the softer dollar. The analysis suggests a focus on whether buyers can build momentum above the key resistance levels or if the dollar will find support after its recent strong performance.