U.S. Dollar Gains Ground As PCE Price Index Exceeds Estimates: 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 PCE Price Index report. The report indicated that PCE Price Index increased by +2.6% year-over-year, compared to analyst forecast of +2.5%.

In case U.S. Dollar Index settles above the 100.00 level, it will head towards the nearest resistance, which is located in the 100.40 – 100.55 range.

EUR/USD Attempts To Rebound After Pullback

EUR/USD gained some ground as traders reacted to the higher-than-expected inflatin data from Germany. Inflation Rate remained unchanged at 2% in July, compared to analyst forecast of 1.9%.

If EUR/USD manages to settle back above the 1.1465 level, it will head towards the resistance at 1.1575 – 1.1590.

GBP/USD Remains Under Pressure Amid Lack Of Positive Catalysts

GBP/USD tested new lows as pullback continued. Traders remain focused on the strength of the U.S. dollar amid lack of positive catalysts for the British pound.

From the technical point of view, GBP/USD needs to settle above the resistance at 1.3250 – 1.3270 to gain sustainable upside momentum.

USD/CAD Tests Resistance At 1.3845 – 1.3860

USD/CAD tested new highs as traders reacted to the pullback in commodity markets. Other commodity-related currencies have also moved lower in today’s trading session.

A successful test of the resistance at 1.3845 – 1.3860 will open the way to the test of the next resistance level at 1.3925 – 1.3940.

USD/JPY Rallies As BoJ Leaves Rates Unchanged

USD/JPY rallied as traders focused on BoJ Interest Rate Decision. The Bank of Japan left the interest rate unchanged at 0.5%, in line with analyst expectations.

The nearest resistance level for USD/JPY is located in the 151.00 – 151.50 range. If USD/JPY climbs above this level, it will head towards the next resistance at 154.50 – 155.00.

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