U.S. Dollar Is Mostly Flat: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Range-Bound

U.S. Dollar Index is mostly flat amid lack of catalysts. Treasury yields are moving lower, but this move does not put pressure on the American currency.

In case U.S. Dollar Index settles back below the 50 MA at 101.47, it will head towards the nearest support level, which is located in the 100.80 – 101.00 range.

EUR/USD Pulled Back Below 1.1030

EUR/USD is slowing moving lower as traders focus on Germany’s inflation report, which showed that Inflation Rate declined from 2.3% in July to 1.9% in August. The report met analyst expectations.

The technical picture remains unchanged at EUR/USD is heading towards the support at 1.0980 – 1.1000. RSI is in the moderate territory, so there is enough room to gain momentum in case the right catalysts emerge.

GBP/USD Rebounded From Session Lows

GBP/USD managed to rebound from session lows and is trying to settle back above the 1.3070 level.

In case this attempt is successful, GBP/USD will head towards the nearest resistance at 1.3120 – 1.3140. A move above 1.3140 will push GBP/USD towards the resistance at 1.3280 – 1.3300.

USD/CAD Tests Resistance At 1.3600 – 1.3620

USD/CAD tests new highs as traders focus on the strong sell-off in the oil markets, which was triggered by OPEC monthly report. OPEC+ cut its oil demand forecasts for 2024 and 2025, which was bearish for commodity-related currencies. From a big picture point of view, traders remain worried about the performance of the Chinese economy.

Currently, USD/CAD is trying to settle above the resistance at 1.3600 – 1.3620. A successful test of this level will push USD/CAD towards the next resistance at 1.3700 – 1.3715.

USD/JPY Is Losing Ground As Treasury Yields Fall

USD/JPY pulled back amid falling Treasury yields. The yield of 2-year Treasuries pulled back towards the 3.60% level, while the yield of 10-year Treasuries settled near 3.65%.

If USD/JPY declines below the support at 141.80 – 142.50, it will head towards the next support level at 138.50 – 139.00.

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