GBP/USD Tests Support At 1.2100

Key Insights

• EUR/USD traders are waiting for additional catalysts. 
• USD/JPY is trying to gain some upside momentum after the huge sell-off. 
• NZD/USD pulled back towards the 0.6300 level. 

U.S. Dollar Lacks Dynamics In Today’s Trading Session

U.S. Dollar Index settled near the 104.15 level while Treasury yields pulled back. The U.S. has recently released a strong CB Consumer Confidence report, but it has not provided additional support to the U.S. dollar.

Demand for riskier assets is rising, which serves as a bearish catalyst for the American currency. In case the U.S. Dollar Index settles below the 104 level, it will head towards the support at 103.60.

EUR/USD Remains Range-Bound

EUR/USD remains stuck in the range between the support at 1.0600 and the resistance at 1.0660. From a big picture point of view, EUR/USD is trying to stabilize after the strong rally, as it moved from 0.9550 to 1.0700 in just two months.

To gain additional momentum, EUR/USD needs to get out of the current trading range. It remains to be seen whether traders will find enough catalysts for a move ahead of Christmas.

GBP/USD Is Under Pressure

GBP/USD managed to settle below the support level at 1.2150 and gained strong downside momentum. Currently, GBP/USD is trying to get below the 1.2100 level.

In case GBP/USD settles below 1.2100, it will head towards the support level at 1.2060. A successful test of this level will push GBP/USD towards the next support at 1.2030.

On the upside, the nearest resistance level for GBP/USD is located at the 20 EMA at 1.2125. A move above the 20 EMA will push GBP/USD towards the resistance at 1.2150. If GBP/USD gets above 1.2150, it will head towards the next resistance level at 1.2190.

USD/CAD Is Mostly Flat After Inflation Data

Today, USD/CAD traders focused on the inflation reports from Canada. The reports indicated that Inflation Rate remained unchanged at 5.8% in November.

USD/CAD failed to settle below the support at 1.3600 and moved towards the 1.3630 level despite the strong rebound of WTI oil. Meanwhile, AUD/USD moved back above the 0.6700 level, while NZD/USD retreated towards 0.6300.

USD/JPY Tries To Rebound After Sell-Off

USD/JPY is currently trying to settle above the 132 level as some traders are ready to bet on a rebound after yesterday’s huge sell-off. The fundamental picture for USD/JPY has changed as the BoJ signaled that it was worried about rising inflation. It remains to be seen whether USD/JPY will be able to gain sustainable upside momentum in the near term.

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