U.S. Dollar Tests Multi-Month Highs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs

U.S. Dollar Index gains ground as traders react to the Existing Home Sales report, which indicated that Existing Home Sales declined by 1.0% month-over-month in September.

Currently, U.S. Dollar Index is trying to settle above the resistance at 104.60 – 104.80. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level at 105.85 – 106.05.

EUR/USD Remains Under Strong Pressure

EUR/USD tests new lows as traders bet that ECB will cut rates aggressively to provide additional support to the European economy. Today, traders also focused on the Euro Area Consumer Confidence report. The report indicated that Consumer Confidence improved from -12.9 in September to -12.5 in October, in line with analyst consensus.

A successful test of the support at 1.0765 – 1.0780 will open the way to the test of the next support level at 1.0665 – 1.0680.

GBP/USD Tests New Lows As Pullback Continues

GBP/USD retreats as traders focus on rising Treasury yields. The yield of 2-year Treasuries moved above the 4.07% level, while the yield of 10-year Treasuries settled above 4.23%.

A move below the 1.2900 level will lead to the test of the nearest support level, which is located in the 1.2870 – 1.2880 range.

USD/CAD Gains Ground As BoC Cuts Rates

USD/CAD tested new highs as traders reacted to the BoC Interest Rate Decision. The BoC cut the interest rate from 4.25% to 3.75%, in line with analyst consensus.

If USD/CAD manages to settle above the 1.3850 level, it will head towards the resistance at 1.3930 – 1.3950.

USD/JPY Attempts To Settle Above The 153.00 Level

USD/JPY gains ground, supported by rising Treasury yields. Currently, USD/JPY is trying to climb above the resistance at 153.00 – 153.50.

In case this attempt is successful, USD/JPY will move towards the next resistance level at 155.00 – 155.50.

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