U.S. Dollar Moves Away From Session Highs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Mostly Flat Ahead Of The Weekend

U.S. Dollar Index tested resistance at 108.30 – 108.50 but lost momentum and pulled back. Today, traders focused on the PCE Price Index report, which indicated that PCE Price Index increased by 0.3% month-over-month in December. The report met analyst estimates.

If U.S. Dollar Index settles above the 108.50 level, it will move towards the next resistance level at 109.20 – 109.40.

EUR/USD Attempts To Settle Back Above 1.0400

EUR/USD is mostly flat as traders focus on Germany’s inflation data. Inflation Rate declined from 2.6% in December to 2.3% in January, compared to analyst forecast of 2.6%.

A move above the 1.0400 level will push EUR/USD towards the nearest resistance level at 1.0420 – 1.0435.

GBP/USD Rebounds From Session Lows

GBP/USD gained some ground as traders reacted to Nationwide Housing Prices report from the UK. The report indicated that housing prices increased by 4.1% year-over-year in January, compared to analyst forecast of 4.3%.

In case GBP/USD climbs above the 1.2450 level, it will get to the test of the nearest resistance at 1.2485 – 1.2500.

USD/CAD Tested New Highs

USD/CAD tested new highs as traders focused on Donald Trump’s tariff plans. Canada will be hit with 25% tariffs on Saturday.

A successful test of the resistance at 1.4540 – 1.4560 will push USD/CAD towards the next resistance level at 1.4650 – 1.4665. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in the near term.

USD/JPY Gains Ground As Japan’s Unemployment Rate Declines

USD/JPY is moving higher as traders react to economic data from Japan. Unemployment Rate declined from 2.5% in November to 2.4% in December, compared to analyst forecast of 2.5%. Retail Sales increased by 3.7% year-over-year, compared to analyst consensus of 3.2%.

A move above the 50 MA at 155.38 will push USD/JPY towards the resistance level at 156.00 – 156.50.

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