U.S. Dollar Starts The Week On A Strong Note: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As Chicago PMI Beats Expectations

U.S. Dollar Index gains ground as traders react to the better-than-expected Chicago PMI report, which showed that Chicago PMI increased from 46.1 in August to 46.6 in September. Today, traders also focused on the Dallas Fed Manufacturing Index report, which indicated that Dallas Fed Manufacturing Index improved from -9.7 to -9.0.

The nearest resistance level for U.S. Dollar Index is located in the 100.80 – 101.00 range. A move above the 101.00 level will open the way to the test of the next resistance at 102.00 – 102.20.

EUR/USD Pulls Back As Germany’s Inflation Rate Drops To 1.6%

EUR/USD pulled back as traders reacted to Germany’s inflation data. Inflation Rate declined from 1.9% in August to 1.6% in September, compared to analyst consensus of 1.7%.

A successful test of the support at 1.1115 – 1.1130 will open the way to the test of the next support level at 1.1000 – 1.1015.

GBP/USD Remains Stuck Below The Key Resistance Level

GBP/USD gained some ground despite the weak GDP Growth Rate report, which showed that GDP Growth Rate was 0.5% in the second quarter.

From the technical point of view, GBP/USD remains stuck below the key resistance at 1.3420 – 1.3440. GBP/USD needs to settle above the 1.3440 level to gain additional upside momentum.

USD/CAD Is Flat At The Start Of The Week

USD/CAD is mostly flat despite the strong pullback in precious metals markets. Other commodity-related currencies are moving higher in today’s trading session.

If USD/CAD settles above the 50 MA at 1.3516, it will head towards the next resistance level at 1.3600 – 1.3620.

USD/JPY Rebounds As Treasury Yields Rise

USD/JPY continues to rebound as traders focus on rising Treasury yields. Currently, USD/JPY is trying to settle above the 50 MA at 143.53.

In case this attempt is successful, USD/JPY will move out of the downward channel and head towards the nearest significant resistance level at 146.00 – 146.50.

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