U.S. Dollar Is Moving Lower: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Attempts To Settle Below 102.50

U.S. Dollar Index is losing some ground as traders take profits after the strong rally. Treasury yields are moving higher, but this move does not provide material support to the American currency.

The nearest support level for U.S. Dollar Index is located in the 102.00 – 102.20 range. A move below the 102.00 level will push U.S. Dollar Index towards the 50 MA at 101.30.

EUR/USD Gains Ground Despite Weak Factory Orders Data From Germany

EUR/USD gains ground despite the disappointing Factory Orders report from Germany. The report indicated that Factory Orders decreased by 5.8% month-over-month in August, compared to analyst consensus of -2%. Today, traders also had a chance to take a look at the Euro Area Retail Sales report. The report showed that Euro Area Retail Sales increased by 0.2% month-over-month in August, in line with analyst expectations.

A move above the resistance at 1.1000 – 1.1015 will push EUR/USD towards the 50 MA at 1.1086.

GBP/USD Tested New Lows As Pullback Continued

GBP/USD tested new lows as traders focused on the Halifax House Price Index report, which showed that house prices increased by 0.3% month-over-month in September.

If GBP/USD declines below the 1.3050 level, it will move towards the nearest support at 1.3000 – 1.3020.

USD/CAD Gained Ground As Demand For Commodity-Related Currencies Declined

USD/CAD continues to move higher despite the strong rally in the oil markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A successful test of the resistance at 1.3600 – 1.3620 will open the way to the test of the next resistance level, which is located in the 1.3700 – 1.3715 range.

USD/JPY Pulled Back As Traders Took Profits After The Recent Rally

USD/JPY is losing some ground amid profit-taking. From a big picture point of view, traders are waiting for additional catalysts.

RSI has recently moved into the moderate territory, so there is enough room to gain additional upside momentum in case the right catalysts emerge.

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