U.S. Dollar Index Remains Stuck Near 101.50
U.S. Dollar Index is mostly flat as traders focus on the Initial Jobless Claims report. The report indicated that 194,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 200,000.
U.S. Dollar Index settled near the support level at 101.50 – 101.65. In case U.S. Dollar Index declines below the 101.50 level, it will head towards the next support at 100.85 – 101.00.
EUR/USD Pulls Back As French Bond Yields Test New Highs
EUR/USD moved lower as traders focused on the Euro Area Consumer Confidence report and reacted to the continuation of the sell-off in French debt markets.
Euro Area Consumer Confidence declined from -16.8 in September to -17 in October, compared to analyst forecast of -17.
The yield of French 10-year bonds tested the 5.14% level as traders worried that the country would fail to contain protests.
If EUR/USD settles below the 50 MA at 1.1208, it will get to the test of the support level at 1.1175 – 1.1190. A move below the 1.1175 level will push EUR/USD towards the next support level, which is located in the 1.1100 – 1.1115 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
EUR/USD Price Forecast
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See all EUR/USD forecastsGBP/USD Attempts To Settle Above 1.3400
GBP/USD made an attempt to settle above the resistance at 1.3385 – 1.3400 but lost momentum and pulled back as traders reacted to rising oil prices. Oil markets gained 1.5% as traders prepared for the potential restart of the military operation against Iran.
If GBP/USD climbs above the 1.3400 level, it will head towards the next resistance level at 1.3485 – 1.3500. On the support side, a move below the 1.3350 level will open the way to the test of the support at 1.3285 – 1.3300.
USD/CAD Remains Under Pressure
USD/CAD remains under pressure despite the strong pullback in precious metals markets. Gold is down by -2.2%, while silver pulled back by -5%. Other commodity-related currencies are losing ground in today’s trading session.
The nearest support level for USD/CAD is located in the 1.3985 – 1.4000 range. In case USD/CAD manages to settle below the 1.3985 level, it will head towards the next support level at 1.3900 – 1.3915.
USD/JPY Is Losing Ground As Treasury Yields Fall
USD/JPY moved lower as traders focused on the strong pullback in Treasury yields. The yield of 2-year Treasuries declined below the 4.70% level, while the yield of 10-year Treasuries settled below the psychologically important 5.00% level. Treasury yields moved lower as demand for U.S. bonds increaseed amid sell-off in U.S. equity markets.
Currently, USD/JPY is trying to settle below the 157.00 level. In case this attempt is successful, USD/JPY will head towards the next support, which is located in the 155.00 – 155.50 range.
On the upside, USD/JPY needs to settle above the resistance at 158.00 – 158.50 to gain upside momentum in the near term. In this case, USD/JPY will move towards the 160.00 level.
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