U.S. Dollar Moves Towards Weekly Highs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar

U.S. Dollar Index gains ground as traders focus on rising Treasury yields. The yield of 2-year Treasuries settled above the 4.15% level, while the yield of 10-year Treasuries moved towards 4.23%.

Currently, U.S. Dollar Index is trying to settle above the 106.50 level. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance at 107.10 – 107.30.

EUR/USD

EUR/USD pulls back as traders focus on the final reading of Germany’s inflation report for November. The report indicated that Inflation Rate increased from 2% in October to 2.2% in November, in line with analyst consensus.

If EUR/USD settles below the support at 1.0525 – 1.0540, it will move towards the next support level, which is located in the 1.0435 – 1.0450 range.

GBP/USD

GBP/USD is mostly flat amid lack of strong catalysts. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

If GBP/USD declines below the nearest support at 1.2700 – 1.2715, it will move towards the next support level at 1.2575 – 1.2590.

USD/CAD

USD/CAD is mostly flat as traders focus on the continuation of the rebound in the oil markets.

From the technical point of view, USD/CAD faced resistance near the 1.4200 level. A move above 1.4200 will push USD/CAD towards the next resistance level, which is located in the 1.4330 – 1.4350 range.

USD/JPY

USD/JPY tested new highs, supported by rising Treasury yields. RSI is in the moderate territory, so there is enough room to gain additional upside momentum in the near term.

If USD/JPY stays above the 152.00 level, it will move towards the nearest resistance level, which is located in the 153.00 – 153.50 range.

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