U.S. Dollar Pulls Back After PMI Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats Amid Profit-Taking

U.S. Dollar Index is losing some ground despite the encouraging Composite PMI report, which indicated that Composite PMI improved from 54.9 in November to 56.6 in December.

U.S. Dollar Index has recently made an attempt to settle above the resistance at 107.10 – 107.30 but lost momentum and pulled back towards the 108.90 level. If U.S. Dollar Index settles below 106.75, it will head towards the 50 MA at 106.42.

EUR/USD Gained Some Ground As Composite PMI Beat Expectations

EUR/USD moved higher, supported by the better-than-expected Composite PMI report. The report showed that Composite PMI increased from 48.3 in November to 49.5 in December. Numbers below 50 show contraction.

If EUR/USD climbs above the resistance at 1.0525 – 1.0540, it will head towards the next resistance level at 1.0620 – 1.0640.

GBP/USD Attempts To Settle Above The 1.2700 Level

GBP/USD gains ground as traders focus on PMI data. Composite PMI remained unchanged at 50.5 in December, while analysts expected that it would rise to 50.7.

The nearest resistance level for GBP/USD is located in the 1.2700 – 1.2715 range. A move above the 1.2715 level will push GBP/USD towards the next resistance at 1.2850 – 1.2870.

USD/CAD Moved Away From Yearly Highs

USD/CAD pulled back from session highs as traders take some profits off the table after the strong rally.

In case USD/CAD settles back below 1.4200, it will head towards the 50 MA at 1.4148. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

USD/JPY Tested New Highs Amid Rising Treasury Yields

USD/JPY tested new highs as traders remained focused on rising Treasury yields. Traders have already started to prepare for the Fed decision, which will be released on Wednesday.

If USD/JPY settles above the 154.00 level, it will head towards the resistance level at 156.00 – 156.50.

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