U.S. Dollar Tests Yearly Highs As Rally Continues: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs After Strong PMI Data

U.S. Dollar Index tests new highs as traders react to PMI reports. Manufacturing PMI improved from 48.5 in October to 48.8 in November, in line with analyst estimates. Services PMI increased from 55.0 to 57.0, compared to analyst forecast of 55.2. Numbers above 50 show expansion. The U.S. economy stays strong as the services sector continues to expand, which is bullish for the U.S. dollar.

If U.S. Dollar Index stays above the previous resistance at 107.10 – 107.30, it will head towards the next resistance level at 108.70 – 108.90.

EUR/USD Is Losing Ground As PMI Reports Miss Expectations

EUR/USD tested new lows as traders focused on the disappointing PMI data. Euro Area Composite PMI decreased from 50.0 in October to 48.1 in November, while analysts expected that it would remain unchanged.

A move below the support at 1.0435 – 1.0450 opens the way to the test of the next support level, which is located in the 1.0300 – 1.0320 range.

GBP/USD Tests New Lows As UK Retail Sales Drop

GBP/USD is under pressure as UK PMI and Retail Sales reports missed analyst expectations. Composite PMI decreased from 51.8 in October to 49.9 in November, compared to analyst consensus of 51.8. Retail Sales declined by 0.7% month-over-month in October.

In case GBP/USD settles below the support at 1.2510 – 1.2525, it will head towards the next support level at 1.2435 – 1.2450.

USD/CAD Is Mostly Flat Amid Rising Commodity Markets

USD/CAD is mostly flat as traders focus on rising commodity markets. Interestingly, other commodity-related currencies have found themselves under pressure in today’s trading session.

If USD/CAD climbs above the 1.4000 level, it will head towards the nearest resistance level, which is located in the 1.4100 – 1.4120 range.

USD/JPY Is Stuck Below The Resistance At 155.00 – 155.50

USD/JPY remains stuck below the resistance at 155.00 – 155.50 as traders wait for strong moves in Treasury markets.

If USD/JPY settles above the 155.50 level, it will head towards the next resistance level at 157.50 – 158.00.

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