U.S. Dollar Is Moving Lower As Traders Focus On U.S. – China Trade Truce: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Lower As Traders Focus On U.S. – China Relations

U.S. Dollar Index is losing ground as traders focus on U.S. – China trade truce. The truce provided strong support to U.S. equity markets but had little impact on the dynamics of the American currency.

In case U.S. Dollar Index settles below the 50 MA at 98.83, it will head towards the nearest support level, which is located in the 98.00 – 98.20 range.

EUR/USD Tests The 1.1650 Level

EUR/USD gained some ground as traders reacted to the better-than-expected Ifo Business Climate report from Germany. The report indicated that Business Climate improved from 87.7 in September to 88.4 in October, compared to analyst forecast of 88.

In case EUR/USD manages to settle above the 1.1650 level, it will head towards the resistance level at 1.1685 – 1.1700.

GBP/USD Attempts To Settle Above 1.3350

GBP/USD moved higher as traders focused on U.S. – China relations. From the technical point of view, GBP/USD made an attempt to settle above the resistance level at 1.3330 – 1.3350.

A move above the 1.3350 level will push GBP/USD towards the next resistance at 1.3485 – 1.3500.

USD/CAD Remains Stuck Near The 1.4000 Level

USD/CAD is mostly flat despite the strong sell-off in precious metals markets. other commodity-releated currencies moved higher in today’s trading session, supported by U.S. – China trade truce.

If USD/CAD settles above the resistance at 1.4000 – 1.4015, it will head towards the next resistance at 1.4080 – 1.4095.

USD/JPY Gains Ground As Treasury Yields Rise

USD/JPY made an attempt to settle above the 153.00 level as the yield of 2-year Treasuries climbed above the 3.50% level.

If USD/JPY stays above 153.00, it will head towards the resistance at 154.50 – 155.00. RSI is in the moderate territory, and there is enough room to gain additional momentum in the near term.

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