U.S. Dollar Moves Higher: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Climbed Above 109.00

U.S. Dollar Index gains ground as traders remain bullish in absence of strong catalysts. From a big picture point of view, forex traders stay focused on FOMC Minutes, which were released yesterday.

The nearest significant resistance level for U.S. Dollar Index is located in the 109.40 – 109.60 range. If U.S. Dollar Index climbs above this level, it will head towards the next resistance at 111.10 – 111.30.

EUR/USD Attempts To Settle Below 1.0300

EUR/USD is losing ground as traders focus on the Euro Area Retail Sales report. The report showed that Retail Sales increased by 0.1% month-over-month in November, compared to analyst forecast of +0.4%. On a year-over-year basis, Retail Sales grew by 1.2%.

If EUR/USD stays below the 1.0300 level, it will move towards the nearest support at 1.0235 – 1.0250.

GBP/USD Remains Under Strong Pressure

GBP/USD tested new lows as traders remained focused on the outlook for UK economy. UK government bond yields tested multi-year highs, which showed that the market was in a state of panic.

In case GBP/USD declines below the 1.2270 level, it will move towards the nearest support level at 1.2200 – 1.2215.

USD/CAD Tests The 1.4400 Level

USD/CAD continues its attempts to settle above the 1.4400 level amid falling demand for commodity-related currencies. Rising oil and gold markets did not provide support to the Canadian dollar.

If USD/CAD settles above 1.4400, it will move towards the recent highs near the 1.4460 level.

USD/JPY Pulled Back Below 158.00

USD/JPY pulled back after an unsuccessful attempt to settle above the resistance level at 158.50 – 159.00. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

If USD/JPY declines below the 50 MA at 157.55, it will move towards the next support level at 156.00 – 156.50.

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