U.S. Dollar Stays Strong: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs

U.S. Dollar Index gains ground despite the pullback in Treasury yields. Traders bet that Fed will be less dovish than other central banks.

A move above the resistance at 103.40 – 103.60 will push the U.S. Dollar Index towards the next resistance level at 104.60 – 104.80.

EUR/USD Remains Under Strong Pressure

EUR/USD tests new lows as traders focus on dovish comments from ECB officials, who indicated that the central bank would continue to cut rates to provide support to the European economy.

If EUR/USD declines below the 1.0850 level, it will continue to move towards the next support level, which is located in the 1.0765 – 1.0780 range.

GBP/USD Retreats As UK Inflation Rate Misses Expectations

GBP/USD tests support at 1.3000 – 1.3020 as traders react to inflation data from the UK. Inflation Rate declined from 2.2% in August to 1.7% in September, compared to analyst consensus of 1.9%. Core Inflation Rate decreased from 3.6% to 3.2%, while analysts expected that it would drop to 3.4%.

In case GBP/USD settles below the 1.3000 level, it will move towards the next support level at 1.2870 – 1.2880.

USD/CAD Is Losing Ground As Precious Metals Markets Rise

USD/CAD is moving away from recent highs as traders continue to take profits off the table and focus on rising precious metals markets.

If USD/CAD pulls back below the 1.3750 level, it will move towards the nearest support level, which is located in the 1.3700 – 1.3715 range.

USD/JPY Continues Its Attempts To Settle Above 150.00

USD/JPY is trying to settle above the resistance at 149.50 – 150.00 as traders stay bullish and focus on general strength of the U.S. dollar.

A successful test of the resistance at 149.50 – 150.00 will open the way to the test of the next resistance level at 153.00 – 153.50.

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