U.S. Dollar Gains Ground As Rebound Continues: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Attempts To Settle Above 99.50

U.S. Dollar Index gained some ground in choppy trading. From the technical point of view, U.S. Dollar Index is trying to rebound after the recent pullback.

In case U.S. Dollar Index manages to settle above the 99.50 level, it will head towards the 50 MA at 99.75. A move above the 50 MA will open the way to the test of the resistance at 100.00 – 100.15.

EUR/USD Tests Support At 1.1585 – 1.1600

EUR/USD pulled back as traders focused on inflation reports from the EU. Euro Area Inflation Rate increased from 2.1% in October to 2.2% in November, compared to analyst forecast of 2.1%. Core Inflation Rate remained unchanged at 2.4%, while analysts expected that it would grow to 2.5%. Today, traders also had a chance to take a look at the Euro Area Unemployment Rate report. The report showed that Unemployment Rate remained unchanged at 6.4% in October, compared to analyst consensus of 6.3%.

Currently, EUR/USD is trying to settle below the support level at 1.1585 – 1.1600. If EUR/USD manages to settle back below the 1.1585 level, it will head towards the next support, which is located in the 1.1470 – 1.1485 range.

GBP/USD Remains Under Pressure

GBP/USD continues to move lower after an unsuccessful attempt to settle above the resistance at 1.3250 1.3265. The UK budget has been released, and traders are waiting for additional catalysts.

In case GBP/USD stays below the 1.3200 level, it will head towards the nearest support at 1.3145 – 1.3160. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD Moves Lower Amid Rising Demand For Commodity-Related Currencies

USD/CAD tests support at 1.3975 – 1.3990 despite the pullback in commodity markets. Other commodity-related currencies are also moving higher in today’s trading session.

A move below the 1.3975 level will open the way to the test of the support at 1.3885 – 1.3900.

USD/JPY Tests The 156.00 Level

USD/JPY found support in the 154.50 – 155.00 range and rebounded towards the 156.00 level. Today, traders focused on Japan’s Consumer Confidence report. The report showed that Consumer Confidence improved from 35.8 in October to 37.5 in November, compared to analyst forecast of 35.9.

If USD/JPY manages to settle back above the 50 MA at 156.32, it will head towards the resistance level at 158.00 – 158.50.

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