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

U.S. Dollar Rebounds As Consumer Confidence Exceeds Expectations

U.S. Dollar Index rebounded from session lows as traders reacted to the better-than-expected Michigan Consumer Sentiment report, which indicated that Consumer Sentiment increased from 67.9 in August to 70.1 in September.

In case U.S. Dollar Index settles back above the 100.50 level, it will head towards the nearest resistance, which is located in the 100.80 – 101.00 range.

EUR/USD Faced Strong Resistance At 1.1200

EUR/USD pulled back after an unsuccessful attempt to settle above the 1.1200 level. Today, traders focused on the Euro Area Economic Sentiment report. The report indicated that Economic Sentiment declined from 96.5 in August (revised from 96.6) to 96.2, compared to analyst consensus of 96.5.

The nearest support level for EUR/USD is located in the 1.1115 – 1.1135 range. A move below 1.1115 will open the way to the test of the next support at 1.1000 – 1.1015.

GBP/USD Pulled Back From Session Highs

GBP/USD faced strong resistance near the 1.3420 level and pulled back. At this point, it looks that GBP/USD needs additional positive catalysts to move above the resistance at 1.3420 – 1.3440.

If GBP/USD declines below the 1.3350 level, it will head towards the 50 MA at 1.3312. A move below the 50 MA will push GBP/USD towards the support at 1.3245 – 1.3265.

USD/CAD Gains Ground As Precious Metals Markets Pull Back

USD/CAD climbed above the 1.3500 level as traders focused on the pullback in precious metals markets, which was bearish for commodity-related currencies.

In case USD/CAD moves above the 50 MA at 1.3526, it will head towards the resistance at 1.3600 – 1.3620.

USD/JPY Retreats As Traders Focus On Japan’s Ruling Party Elections

USD/JPY is losing ground as traders react to political developments in Japan. Former Defense Minister won the ruling party elections and is set to become the next Prime Minister of the country.

A successful test of the support at 141.80 – 142.50 will open the way to the test of the next support level at 138.00 – 138.50.

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