U.S. Dollar Is Losing Ground: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats Amid Profit-Taking

U.S. Dollar Index is losing ground as traders react to the better-than-expected NAHB Housing Market Index report. The report showed that NAHB Housing Market Index improved from 43 in October to 46 in November, compared to analyst forecast of 44.

The nearest support level for U.S. Dollar Index is located in the 106.00 – 106.15 range. A move below the 106.00 level will push U.S. Dollar Index towards the next support at 104.60 – 104.80.

EUR/USD Rebounds From Yearly Lows

EUR/USD gains ground as traders continue to take profits off the table after the strong pullback.

If EUR/USD manages to settle above the 1.0600 level, it will move towards the next resistance at 1.0650 – 1.0670.

GBP/USD Attempts To Settle Above 1.2650

GBP/USD is moving higher as traders focus on general weakness of the American currency and wait for additional catalysts.

If GBP/USD climbs above the resistance at 1.2675 – 1.2700, it will head towards the 50 MA at 1.2792.

USD/CAD Pulls Back As Precious Metals Rally

USD/CAD retreats as traders focus on the strong rally in precious metals markets. Other commodity-related currencies are also moving higher in today’s trading session.

If USD/CAD settles back below the 1.4000 level, it will head towards the support level, which is located in the 1.3930 – 1.3950 range.

USD/JPY Tests Resistance At 155.00 – 155.50

USD/JPY tests resistance at 155.00 – 155.50 as traders react to the Machinery Orders report from Japan. The report indicated that Machinery Orders declined by 0.7% month-over-month in September, compared to analyst forecast of +1.9%. On a year-over-year basis, Machinery Orders decreased by 4.8%, while analysts expected that they would grow by 2.2%.

A successful test of the resistance at 155.00 – 155.50 will push USD/JPY towards the next resistance level at 157.50 – 158.00.

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