U.S. Dollar Pulls Back Ahead Of Fed Decision: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Losing Some Ground As Traders Wait For Fed Decision

U.S. Dollar Index is losing some ground as traders wait for the Fed Interest Rate decision, which will be released soon. Today, traders also had a chance to take a look at Building Permits and Housing Starts reports for August. Building Permits increased by 4.9% month-over-month, compared to analyst consensus of +1.1%. Housing Starts grew by 9.6%, compared to analyst forecast of +3.2%.

Technical catalysts will take a back seat today as traders will react to Fed decision and Powell’s comments, which will have a major impact on forex market dynamics.

EUR/USD Remains Stuck In A Tight Range

EUR/USD is trying to settle above the resistance at 1.1110 – 1.1135 as traders react to the final reading of the Euro Area Inflation Rate report, which missed analyst expectations.

If EUR/USD pulls back below the 1.1110 level, it will head towards the 50 MA at 1.1075. On the upside, a move above 1.1135 will push EUR/USD towards the resistance at 1.1185 – 1.1200.

GBP/USD Gained Ground As UK Core Inflation Rate Exceeded Expectations

GBP/USD pulled back after an unsuccessful attempt to settle above the resistance at 1.3245 – 1.3265. UK Inflation Rate remained unchanged at 2.2% in August, while Core Inflation Rate increased from 3.3% to 3.6%.

If GBP/USD climbs above the 1.3265 level, it will gain additional upside momentum and test multi-year highs.

USD/CAD Settled Near The 1.3600 Level

USD/CAD is stuck below the strong resistance at 1.3600 – 1.3620 as traders wait for the Fed decision.

If USD/CAD settles below the 50 MA at 1.3580, it may gain significant downside momentum and move towards the support level at 1.3480 – 1.3500.

USD/JPY Faced Resistance Near 142.50

USD/JPY moved lower after an unsuccessful attempt to climb above the 142.50 level. Traders ignored rising Treasury yields and took some profits off the table after the recent rebound.

If USD/JPY settles below the 141.80 level, it will head towards the 140.00 level.

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