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

U.S. Dollar Moves Lower As Traders Focus On Economic Data

U.S. Dollar Index is losing ground as traders react to economic reports and wait for Fed Chair Powell’s speech. ISM Services PMI declined from 56 in October to 52.1 in November, compared to analyst forecast of 55.5. The weaker-than-expected ISM Services PMI report put pressure on the American currency. Meanwhile, Treasury yields pulled back from session highs.

If 10-year Treasury yields develop downside momentum in the near term, they would move towards the 3.995% level, which will be bearish for the U.S. dollar.

EUR/USD Tests Resistance At 1.0525 – 1.0540

EUR/USD gains ground as traders focus on the final reading of the Euro Area Services PMI report, which indicated that Services PMI declined from 51.6 in October to 49.5 in November.

Currently, EUR/USD is trying to settle above the resistance at 1.0525 – 1.0540. In case this attempt is successful, EUR/USD will head towards the next resistance level, which is located in the 1.0620 – 1.0640 range.

GBP/USD Climbed Above The 1.2700 Level

GBP/USD tests resistance at 1.2700 – 1.2715 as traders focus on general weakness of the American currency.

A move above the 1.2715 level will open the way to the test of the next resistance level at 1.2850 – 1.2870.

USD/CAD Is Flat As Traders React To The Pullback In The Oil Markets

USD/CAD is mostly flat amid falling demand for commodity-related currencies. Oil markets pulled back, which was bearish for the Canadian dollar.

From the technical point of view, USD/CAD is slowly moving towards the nearest resistance level at 1.4100 – 1.4120.

USD/JPY Tests Support At 150.00 – 150.50

USD/JPY is trying to settle back below the 150.00 level as traders focus on falling Treasury yields.

If USD/JPY declines below the 150.00 level, it will head towards the next support level, which is located in the 147.00 – 147.50 range.

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