U.S. Dollar Is Moving Higher: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Some Ground In Choppy Trading

U.S. Dollar Index gained some ground as traders reacted to housing market data. Building Permits declined by 0.6% month-over-month in October, compared to analyst forecast of +2.5%. Housing Starts decreased by 3.1%, while analysts expected that they would decline by 0.2%.

In case U.S. Dollar Index manages to settle back above the 106.50 level, it will move towards the next resistance level, which is located in the 107.10 – 107.30 range.

EUR/USD Is Moving Lower As Traders Focus On Geopolitical Tensions

EUR/USD pulls back despite falling Treasury yields. Rising geopolitical tensions triggered a sell-off in the European equity markets and put pressure on the euro.

The nearest support level for EUR/USD is located in the 1.0525 – 1.0540 range. A successful test of this level will push EUR/USD towards the next support at 1.0435 – 1.0450.

GBP/USD Tests Resistance At 1.2675 – 1.2700

GBP/USD continues its attempts to settle above the resistance level at 1.2675 – 1.2700. There are no important economic reports scheduled to be released in the UK today, so traders focus on general market sentiment.

A move above the 1.2700 level will open the way to the test of the 50 MA at 1.2764.

USD/CAD Pulls Back As Canada’s Inflation Rate Exceeds Expectations

USD/CAD is losing ground as traders react to inflation data from Canada. Inflation Rate increased from 1.6% in September to 2% in October, compared to analyst forecast of 1.9%. Core Inflation Rate grew from 1.6% to 1.7%, while analysts expected that it would remain unchanged.

If USD/CAD settles below the 50 MA at 1.3977, it will get to the test of the nearest support level at 1.3930 – 1.3950.

USD/JPY Rebounds From Recent Lows

USD/JPY made an attempt to settle below the support at 153.00 – 153.50 but lost momentum and moved back towards the 50 MA at 154.38.

A move above the 50 MA will push USD/JPY towards the nearest resistance level, which is located in the 155.00 – 155.50 range.

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