U.S. Dollar Dives After PCE Inflation Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats As Traders Focus On PCE Inflation Data

U.S. Dollar Index is under pressure as traders react to the PCE Price Index report. The report showed that PCE Price Index increased by 0.2% month-over-month in October, in line with analyst expectations.

Currently, U.S. Dollar Index is trying to settle below the support at 106.00 – 106.15. In case this attempt is successful, U.S. Dollar Index will move towards the next support level, which is located in the 104.30 – 104.50 range.

EUR/USD Climbed Above 1.0550

EUR/USD gains ground despite the disappointing GfK Consumer Confidence data from Germany. The report showed that Consumer Confidence decreased from -18.4 in November to -23.3 in December, compared to analyst forecast of -18.6.

EUR/USD has recently climbed above the resistance at 1.0525 – 1.0540 and is trying to settle above the 1.0575 level. In case this attempt is successful, EUR/USD will move towards the next resistance level at 1.0620 – 1.0640.

GBP/USD Is Heading Towards 1.2700

GBP/USD is moving higher as traders react to U.S. economic data and focus on the pullback in Treasury yields.

The nearest resistance level for GBP/USD is located in the 1.2700 – 1.2715 range. A move above the 1.2715 level will push GBP/USD towards the next resistance at 1.2850 – 1.2870.

USD/CAD Attempts To Settle Below 1.4000

USD/CAD is under pressure as traders focus on general weakness of the American currency.

If USD/CAD pulls back below the 50 MA at 1.4014, it will move towards the next support level, which is located in the 1.3930 – 1.3950 range.

USD/JPY Is Under Strong Pressure As Treasury Yields Fall

USD/JPY is under strong pressure as traders focus on falling Treasury yields and bet on a less hawkish Fed.

A move below the support at 150.00 – 150.50 will push USD/JPY towards the next support level at 147.00 – 147.50.

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