U.S. Dollar Gains Ground As Traders Prepare For Inflation Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests Resistance At 98.00 – 98.20

U.S. Dollar Index is moving higher as traders focus on U.S. inflation report, which will be released tomorrow. Analysts expect that Inflation Rate increased from 2.4% in May to 2.7% in June.

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

EUR/USD Attempts To Settle Below 1.1650

EUR/USD continues its attempts to settle below the nearest support level at 1.1675 – 1.1690.

If EUR/USD manages to settle below the 1.1675 level, it will move towards the next support at 1.1575 – 1.1590.

GBP/USD Remains Under Pressure

GBP/USD tested news lows after the successful test of the previous support level at 1.3500 – 1.3520.

In case GBP/USD stays below the 1.3450 level, it will head towards the next support at 1.3370 – 1.3390. It should be noted that RSI is in the oversold territory, so the risks of a rebound are increasing.

USD/CAD Stays Range-Bound Amid Lack Of Strong Catalysts

USD/CAD is stuck in a tight range as traders wait for additional catalysts. Other commodity-related currencies are losing ground in today’s trading session.

If USD/CAD manages to settle above the 1.3700 level, it will move towards the next resistance level at 1.3735 – 1.3750.

USD/JPY Tests New Highs As Japan’s Machinery Orders Beat Estimates

USD/JPY is trying to settle above the resistance level at 147.50 – 148.00 as traders react to Machinery Orders report from Japan. The report showed that Machinery Orders increased by +4.4% year-over-year in May, compared to analyst forecast of +3.4%.

If USD/JPY climbs above the 148.00 level, it will head towards the resistance at 151.00 – 151.50. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in the near term.

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