Key Insights
- EUR/USD gained upside momentum and moved above the 1.0950 level.
- USD/CAD tested new lows as traders focused on the rebound in the oil markets.
- USD/JPY gained ground after BoJ Interest Rate Decision.
U.S. Dollar
U.S. Dollar Index pulls back as traders react to the housing market data. Housing Starts increased by 14.8% month-over-month in November, while Building Permits declined by 2.5%.
The nearest support level for U.S. Dollar Index is located in the 101.75 – 102.00 range. A move below 101.75 will push U.S. Dollar Index towards the next support at 100.50 – 100.80.
EUR/USD
EUR/USD gains ground as traders focus on the pullback in Treasury yields. The final reading of the Euro Area Inflation Rate report met analyst expectations and did not have a material impact on market sentiment.
In case EUR/USD stays above the 1.0950 level, it will head towards the resistance at 1.1015 – 1.1035.
GBP/USD
GBP/USD gains ground as traders focus on the general weakness of the U.S. dollar.
If GBP/USD manages to settle above the 1.2750 level, it will head towards the next resistance, which is located in the 1.2820 – 1.2850 range.
US Dollar Index Price Forecast
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See all US Dollar Index forecastsUSD/CAD
USD/CAD tests new lows as oil markets continue to rebound amid Red Sea tensions.
From the technical point of view, USD/CAD is moving towards the next support level at 1.3275 – 1.3300.
USD/JPY
USD/JPY moves higher as traders react to BoJ Interest Rate Decision. BoJ left the interest rate unchanged and noted that it would provide additional stimulus to the economy if necessary. The ultra-dovish policy of BoJ remains the key bearish catalyst for the yen.
In case USD/JPY manages to settle above the resistance at 144.65 – 145.00, it will head towards the next resistance level at 148.00 – 149.00.
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