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

U.S. Dollar Pulls Back

U.S. Dollar Index is losing ground as traders react to the Wholesale Inventories report, which showed that Wholesale Inventories decreased by 0.2% month-over-month in November.

In case U.S. Dollar Index declines below the 50 MA at 107.82, it will move towards the support level at 107.10 – 107.30.

EUR/USD Tests Resistance At 1.0435 – 1.0450

EUR/USD gains ground in absence of strong catalysts from the EU. It looks that some traders are ready to bet on euro’s rebound ahead of the New Year.

Currently, EUR/USD is trying to settle above the resistance at 1.0435 – 1.0450. In case this attempt is successful, EUR/USD will move towards the next resistance level, which is located in the 1.0525 – 1.0540 range.

GBP/USD Rebounds From Recent Lows

GBP/USD gained strong upside momentum and is trying to settle back above the resistance at 1.2575 – 1.2590.

If GBP/USD manages to settle above the 1.2590 level, it will head towards the next resistance level at 1.2700 – 1.2715.

USD/CAD Climbed Back Above 1.4400

USD/CAD has recently made an attempt to settle below the 1.4400 level but lost momentum and moved back towards 1.4410.

From the technical point of view, USD/CAD needs to settle above the 1.4450 level to have a chance to gain upside momentum in the near term. A move above 1.4450 opens the way to the test of the resistance at 1.4540 – 1.4560.

USD/JPY Pulled Back As Traders Focused On Economic Data From Japan

USD/JPY is losing some ground as traders focus on economic reports from Japan. Unemployment Rate remained unchanged at 2.5% in November, in line with analyst consensus. Retail Sales increased by 2.8% year-over-year, compared to analyst forecast of +1.7%. Industrial Production decreased by -2.3% month-over-month in November, while analysts expected that it would fall by -3.4%. The better-than-expected reports provided support to the Japanese yen.

In case USD/JPY settles below the 157.50 level, it will head towards the nearest support level at 156.00 – 156.50.

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