U.S. Dollar Retreats On Profit-Taking: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Losing Ground Ahead Of The Weekend

U.S. Dollar Index pulls back as traders take some profits off the table after the strong rally. Today, traders focused on housing market reports. Building Permits declined by 2.9% month-over-month in September, compared to analyst consensus of -0.1%. Housing Starts decreased by 0.5%, while analysts expected that they would grow by 1.8%.

If U.S. Dollar Index pulls back below the 103.40 level, it will move towards the 50 MA at 103.15.

EUR/USD Rebounds From Multi-Week Lows

EUR/USD rebounds as traders focus on the pullback in Treasury yields and take profits after the recent move.

If EUR/USD stays above the 1.0850 level, it will head towards the nearest resistance, which is located in the 1.0900 – 1.0915 range.

GBP/USD Moves Higher As UK Retail Sales Beat Expectations

GBP/USD gained some ground as traders focused on the better-than-expected Retail Sales report. The report showed that Retail Sales increased by 0.3% month-over-month in September, while analysts expected that they would decline by 0.3%.

GBP/USD has recently managed to settle back above the support at 1.3000 – 1.3020 and is trying to gain additional upside momentum. In case this attempt is successful, GBP/USD will head towards the nearest resistance level at 1.3120 – 1.3140.

USD/CAD Is Stuck Below 1.3800

USD/CAD remains stuck below the key resistance at 1.3800 – 1.3815 as traders focus on the rally in precious metals markets and the pullback in the oil markets.

A move above 1.3815 will open the way to the test of the next resistance at 1.3930 – 1.3950.

USD/JPY Pulls Back As Japan’s Core Inflation Rate Exceeds Estimates

USD/JPY moved lower as traders reacted to the Core Inflation Rate report, which showed that Core Inflation Rate decreased from 2.8% in August to 2.4% in September. The report exceeded the analyst consensus of 2.3%.

A move below the 50 MA at 149.24 will provide USD/JPY with an opportunity to gain additional downside momentum.

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