U.S. Dollar Retreats As Retail Sales Miss Expectations: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests Support At 103.20 – 103.40

U.S. Dollar Index is losing ground as traders react to the weaker-than-expected Retail Sales report. The report showed that Retail Sales increased by 0.2% month-over-month in February, compared to analyst forecast of +0.6%.

Currently, U.S. Dollar Index is trying to settle below the support at 103.20 – 103.40. In case this attempt is successful, U.S. Dollar Index will move towards the next support level at 102.00- 102.20.

EUR/USD Gains Ground At The Start Of The Week

EUR/USD gains ground as traders focus on U.S. economic data. NAHB Housing Market Index decreased from 42 in February to 39 in March, compared to analyst forecast of 42.

A succcessful test of the resistance at 1.0920 – 1.0935 will push EUR/USD towards the next resistance level at 1.1030 – 1.1050.

GBP/USD Tests New Highs

GBP/USD tests new highs as traders focus on falling Treasury yields and general weakness of the American currency.

If GBP/USD manages to climb above the 1.3000 level, it will head towards the next resistance level at 1.3050 – 1.3070.

USD/CAD Retreats Amid Strong Demand For Commodity-Related Currencies

USD/CAD pulled back as demand for commodity-related currencies increased. Currently, USD/CAD is trying to settle below the 1.4300 level.

In case this attempt is successful, USD/CAD will move towards the next support level, which is located in the 1.4180 – 1.4200 range. RSI has recently moved into the oversold territory, but there is enough room to gain additional downside momentum in the near term.

USD/JPY Is Flat As Traders Wait For Additional Catalysts

USD/JPY is mostly flat as traders are cautious ahead of BoJ Interest Rate Decision, which will be released on Wednesday.

From the technical point of view, USD/JPY needs to settle above the resistance at 149.00 – 149.50 to have a chance to gain sustainable upside momentum in the near term.

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