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

U.S. Dollar Moved Away From Session Highs

U.S. Dollar Index is trying to settle below the support at 108.30 – 108.50 as traders continue to evaluate the outlook for Trump’s trade policy.

In case U.S. Dollar Index manages to settle below the 108.00 level, it will head towards the next support level at 106.80 – 107.00.

EUR/USD Attempts To Settle Above 1.0400

EUR/USD rebounds from session lows as traders focus on the Euro Area ZEW Economic Sentiment Index report. The report showed that Economic Sentiment increased from 17.0 in December to 18.0 in January, compared to analyst forecast of 16.9.

The nearest resistance level for EUR/USD is located in the 1.0420 – 1.0435 range. A move above the 1.0435 level will push EUR/USD towards the next resistance at 1.0515 – 1.0530.

GBP/USD Rebounds From Session Lows

GBP/USD has also managed to rebound from session lows despite the disappointing UK Unemployment Rate report. The report showed that Unemployment Rate increased from 4.3% in October to 4.4% in November, compared to analyst forecast of 4.3%.

A move above the 1.2320 level will open the way to the test of the nearest resistance at 1.2355 – 1.2370.

USD/CAD Is Moving Lower As Canada’s Core Inflation Rate Rises To 1.8%

USD/CAD  is heading towards the support at 1.4330 – 1.4350 as traders focus on inflation data from Canada. Inflation Rate declined from 1.9% in November to 1.8% in December, while Core Inflation Rate increased from 1.6% to 1.8%.

If USD/CAD declines below the 1.4330 level, it will move towards the next support level, which is located in the 1.4100 – 1.4120 range. RSI is in the moderate territory, and there is plenty of room to gain additional momentum in case the right catalysts emerge.

USD/JPY Pulls Back As Treasury Yields Decline

USD/JPY is losing some ground as traders react to the pullback in Treasury yields. The yield of 2-year Treasuries declined towards the 4.27% level, while the yield of 10-year Treasuries settled below 4.60%.

A move below the 155.00 level will push USD/JPY towards the support level at 153.50 – 154.00.

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