U.S. Dollar Gains Ground Ahead Of Fed Decision: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher As Traders Wait For Fed Decision

U.S. Dollar Index gains ground as traders prepare for Fed decision, which will be released soon. Analysts expect that Fed will cut the federal funds rate from 4.75% to 4.5%.

From the technical point of view, U.S. Dollar Index continues its attempts to settle above the resistance at 107.10 – 107.30. In case U.S. Dollar Index manages to settle above the 107.30 level, it will move towards the next resistance at 108.30 – 108.50.

EUR/USD Pulls Back As Inflation Rate Misses Expectations

EUR/USD pulls back as traders react to the final reading of the Euro Area Inflation Rate report. The report indicated that Euro Area Inflation Rate increased from 2% in October to 2.2% in November, compared to analyst consensus of 2.3%.

RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

GBP/USD Is Losing Some Ground As Core Inflation Rate Rises To 3.5%

GBP/USD moved lower as traders focused on UK inflation data. Inflation Rate increased from 2.3% in October to 2.6% in November, in line with analyst expectations. Core Inflation Rate grew from 3.3% to 3.5%, compared to analyst consensus of 3.6%.

In case GBP/USD climbs above the resistance at 1.2700 – 1.2715, it will head towards the next resistance level at 1.2850 – 1.2870.

USD/CAD Tests Resistance At 1.4330 – 1.4350

USD/CAD is trying to settle above the resistance at 1.4330 – 1.4350 as traders focus on the pullback in precious metals markets.

A move above the 1.4350 level will open the way to the test of the next resistance level at 1.4540 – 1.4560.

USD/JPY Attempts To Settle Above 154.00

USD/JPY gains some ground as traders wait for the release of Fed Interest Rate Decision.

In case USD/JPY climbs back above the 154.00 level, it will head towards the 155.00 level. A move above 155.00 will open the way to the test of the resistance at 156.00 – 156.50.

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