U.S. Dollar Gains Ground As New Home Sales Beat Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher At The Start Of The Week

U.S. Dollar Index gains ground as traders react to the better-than-expected New Home Sales report. The report indicated that New Home Sales decreased by -0.6% month-over-month in July, compared to analyst forecast of -1.1%.

Currently, U.S. Dollar Index is trying to settle above the resistance at 98.00 – 98.20. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located in the 99.20 – 99.40 range.

EUR/USD Retreats As Traders React To Ifo Business Climate Report

EUR/USD pulls back as traders focus on Ifo Business Climate report from Germany. The report showed that Business Climate improved from 88.6 in July to 89.0 in August, exceeding analyst expectations.

If EUR/USD settles below the 50 MA at 1.1666, it will head towards the next support, which is located in the 1.1575 – 1.1590 range.

GBP/USD Tests The 1.3500 Level

GBP/USD attempts to settle below the support level at 1.3485 – 1.3500 as traders focus on general strength of the American currency.

A successful test of the support at 1.3485 – 1.3500 will push GBP/USD towards the next support level at 1.3400 – 1.3415. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

USD/CAD Gains Some Ground After Friday’s Sell-Off

USD/CAD is trying to rebound after the strong pullback from multi-month highs. Other commodity-related currencies are mostly flat in today’s trading session.

The nearest resistance level for USD/CAD is located in the 1.3845 – 1.3860 range. A move above the 1.3860 level will push USD/CAD towards the resistance level at 1.3925 – 1.3940.

USD/JPY Tests Resistance At 147.50 – 148.00

USD/JPY is moving higher as traders focus on rising Treasury yields. Currently, USD/JPY is trying to settle back above the resistance at 147.50 – 148.00.

If USD/JPY manages to settle above the 148.00 level, it will move towards the next resistance at 151.00 – 151.50.

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