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

U.S. Dollar Index Attempts To Settle Above 108.50

U.S. Dollar Index continues its attempts to settle above the resistance at 108.30 – 108.50 as traders react to Case-Shiller Home Price Index report. The report showed that home prices declined by 0.2% month-over-month in October, in line with analyst consensus.

In case U.S. Dollar Index manages to settle above the 108.50 level, it will move towards the next resistance level at 109.40 – 109.60.

EUR/USD Tests New Lows

EUR/USD tests support at 1.0330 – 1.0345 as traders stay focused on the weakness of the European economy.

A successful test of this level will push EUR/USD towards the next support level, which is located in the 1.0215 – 1.0230 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

GBP/USD Remains Under Pressure

GBP/USD is moving lower amid lack of positive catalysts for the pound. The recent attempt to settle back above the 50 MA at 1.2555 was not successful, and GBP/USD is heading towards the 1.2500 level.

A move below 1.2500 will lead to the test of the strong support level at 1.2475 – 1.2490.

USD/CAD Rebounded Towards The 1.4400 Level

USD/CAD found support near the 1.4350 level and rebounded towards the 1.4400 level. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

If USD/CAD climbs above the 1.4400 level, it will head towards the recent highs near the 1.4450 level.

USD/JPY Gains Ground As Treasury Yields Rise

USD/JPY attempts to rebound after the recent pullback. The yield of 10-year Treasuries climbed back above the 4.55% level, which was bullish for USD/JPY.

In case USD/JPY moves above the 157.50 level, it will head towards the nearest resistance level at 158.50 – 159.00.

For a look at all of today’s economic events, check out our economic calendar.