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

U.S. Dollar Retreats Despite Strong PMI Data

U.S. Dollar Index pulls back as traders react to PMI reports. Manufacturing PMI improved from 74.3 in September to 47.8 in October, compared to analyst forecast of 47.5. Services PMI increased from 55.2 to 55.3, while analysts expected that it would decline to 55.

In case U.S. Dollar Index settles below the 104.00 level, it will move towards the nearest support, which is located in the 103.40 – 103.60 range.

EUR/USD Continues To Rebound From Recent Lows

EUR/USD gained some ground despite the weaker-than-expected Composite PMI report. The report showed that Composite PMI improved from 49.6 in September to 49.7 in October, compared to analyst forecast of 49.8. Numbers below 50 show contraction, so ECB may be forced to cut rates aggressively to provide support to the European economy.

If EUR/USD climbs above the 50 MA at 1.0844, it will head towards the next resistance level, which is located in the 1.0900 – 1.0915 range.

GBP/USD Attempts To Settle Above 1.2950

GBP/USD moved higher as traders focused on the weaker-than-expected Manufacturing PMI and Services PMI report. From a big picture point of view, it looks that traders are taking some profits off the table after the recent moves.

In case GBP/USD stays above the 1.2950 level, it will head towards the nearest resistance, which is located in the 1.3000 – 1.3020 range.

USD/CAD Tests New Highs

USD/CAD tests new highs as rally continues. Traders bet that Fed will be less dovish than BoC, which is bearish for the Canadian dollar.

If USD/CAD stays above the 1.3850 level, it will head towards the nearest resistance at 1.3930 – 1.3950.

USD/JPY Pulls Back As Treasury Yields Fall

USD/JPY is losing some ground amid profit-taking. Treasury yields moved lower, putting additional pressure on USD/JPY.

A move below the 151.50 level will open the way to the test of the nearest support level, which is located in the 149.50 – 150.00 range.

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