U.S. Dollar Pulls Back As ISM Manufacturing PMI Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Under Strong Pressure

U.S. Dollar Index is losing ground as traders react to the weaker-than-expected ISM Manufacturing PMI report. The report showed that ISM Manufacturing PMI decreased from 50.9 in January to 50.3 in February, compared to analyst forecast of 50.5.

U.S. Dollar Index moved below the support at 106.80 – 107.00 and is trying to settle below the 106.50 level. In case this attempt is successful, it will head towards the next support, which is located in the 105.50 – 105.70 range.

EUR/USD Attempts To Settle Above 1.0500

EUR/USD is moving higher as traders react to Euro Area Inflation Rate report. The report showed that Inflation Rate declined from 2.5% in January to 2.4% in February, compared to analyst forecast of 2.3%.

The nearest resistance level for EUR/USD is located in the 1.0515 – 1.0530 range. A move above the 1.0530 level will push EUR/USD towards the resistance at 1.0600 – 1.0615.

GBP/USD Tests New Highs

GBP/USD tested new highs after the release of UK Manufacturing PMI report, which showed that UK Manufacturing PMI increased from 46.6 in January to 47.6 in February.

A successful test of the resistance at 1.2715 – 1.2730 will open the way to the test of the next resistance level at 1.2810 – 1.2830.

USD/CAD Retreats As Precious Metals Markets Move Higher

USD/CAD pulls back as traders focus on the rally in precious metals markets. Other commodity-related currencies are also moving higher in today’s trading session.

If USD/CAD settles below the 1.4400 level, it will move towards the nearest support level at 1.4330 – 1.4350.

USD/JPY Declines As Treasury Yields Pull Back

USD/JPY moved lower as traders focused on the pullback in Treasury yields. Currently, USD/JPY attempts to settle below the 50 MA at 149.92.

A move below the 50 MA will push USD/JPY towards the nearest support, which is located in the 149.00 – 149.50 range.

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