U.S. Dollar Gains Ground In Holiday-Thinned Session: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher In Absence Of Economic Reports

U.S. Dollar Index gained some ground at the start of the week. There are no important economic reports scheduled to be released today, so traders will stay focused on general market sentiment.

This week, traders will focus on housing market reports, which will be released on Wednesday. In addition, traders will have a chance to take a look at FOMC Minutes, which may have a material impact on forex market dynamics.

From the technical point of view, U.S. Dollar Index continues its attempts to settle above the nearest resistance level at 97.10 – 97.25. If U.S. Dollar Index manages to settle above the 97.25 level, it will move towards the next resistance, which is located in the 98.00 – 98.15 range.

EUR/USD Retreats As Traders Focus On Euro Area Industrial Production Data

EUR/USD is moving lower as traders react to the Euro Area Industrial Production report. The report showed that Industrial Production declined by -1.4% month-over-month in December, compared to analyst consensus of -1.5%. The previous report was revised from +0.7% to +0.3%.

The European currency benefited from geopolitical tensions and Trump’s attempts to acquire Greenland. However, the euro lost steam in recent weeks, and it looks that the European currency needs additional positive catalysts to gain upside momentum.

The nearest support level for EUR/USD is located in the 1.1835 – 1.1850 range. A successful test of this level will open the way to the test of the next support at 1.1770 – 1.1785.

GBP/USD Moves Lower At The Start Of The Week

GBP/USD pulls back amid lack of strong catalysts for the British pound. Traders wait for tomorrow’s UK Unemployment Rate report.

The report is expected to show that UK Unemployment Rate remained unchanged at 5.1% in December. UK inflation data, which will be released on Wednesday, will also have a material impact on GBP/USD.

Analysts expect that Inflation Rate declined from 3.4% in December to 3.0% in January, while Core Inflation Rate decreased from 3.2% to 3.1%.

A move below the 50 MA at 1.3630 will push GBP/USD towards the nearest support at 1.3570 – 1.3585. On the upside, GBP/USD needs to settle above the 1.3650 level to gain sustainable upside momentum in the near term.

USD/CAD Gains Ground Amid Pullback In Precious Metals Markets

USD/CAD is moving higher as traders focus on the pullback in precious metals markets. Gold settled below the $5000 level, while silver declined below the $76.00 level.

In Canada, traders had a chance to take a look at the Housing Starts report for January. The report showed that Housing Starts declined from 280,700 in December to 238,000 in January, compared to analyst forecast of 263,000.

From the technical point of view, USD/CAD is moving towards the resistance level, which is located in the 1.3650 – 1.3665 range. In case USD/CAD climbs above the 1.3665 level, it will move towards the next resistance at 1.3725 – 1.3740.

USD/JPY Rebounds As Japan’s GDP Growth Rate Misses Estimates

USD/JPY is moving higher as traders focus on the disappointing GDP Growth Rate report from Japan.

The report indicated that GDP Growth Rate was +0.1% in the fourth quarter, compared to analyst forecast of +0.4%. The previous report was revised from -0.6% to -0.7%.

Problems of the Japanese economy may force the BoJ to be dovish, which is bearish for the Japanese yen.

In case USD/JPY settles above the 153.50 level, it will head towards the nearest resistance at 154.50 – 155.00. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

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