U.S. Dollar Rebounds From Session Lows: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests The 101.70 Level

U.S. Dollar Index managed to rebound from session lows as traders reacted to inflation data. Inflation Rate increased by 0.2% month-over-month, in line with analyst expectations. Core Inflation Rate grew by 0.3%, compared to analyst consensus of 0.3%. The higher-than-expected Core Inflation Rate provided support to the American currency.

In case U.S. Dollar Index manages to settle above the 101.70 level, it will move towards the nearest resistance at 102.00 – 102.20.

EUR/USD Is Heading Towards 1.1000

EUR/USD pulled back as traders focused on inflation reports from the U.S. Treasury yields rebounded from recent lows, which was bearish for EUR/USD.

The nearest support level for EUR/USD is located in the 1.0980 – 1.1000 range. If EUR/USD manages to settle below the 1.0980 level, it will move towards the next support at 1.0885 – 1.0900.

GBP/USD Pulled Back As UK GDP Report Missed Expectations

GBP/USD tests support at 1.3025 – 1.3045 as traders react to UK GDP data. GDP remained unchanged in July, compared to analyst forecast of +0.2%. Industrial Production decreased by 0.8% month-over-month in July, while Manufacturing Production declined by 1%.

If GBP/USD settles below the 1.3025 level, it will head towards the support, which is located in the 1.2880 – 1.2900 range.

USD/CAD Remains Stuck Near The Resistance Level At 1.3600 – 1.3620

USD/CAD is losing some ground as traders focus on the rebound in the oil markets.

A move above the resistance at 1.3600 – 1.3620 will open the way to the test of the next resistance level at 1.3700 – 1.3715.

USD/JPY Remains Under Pressure

USD/JPY is moving lower despite the rebound in Treasury yields as traders bet on dovish Fed.

From the technical point of view, USD/JPY continues its attempts to settle below the support at 141.80 – 142.50. In case USD/JPY settles below this support level, it will head towards the next support at 138.50 – 139.00.

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