U.S. Dollar Tests New Highs As Rally Continues
U.S. Dollar Index gains ground as traders react to the Initial Jobless Claims report. The report indicated that 197,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 201,000.
Traders also focused on the sell-off in U.S. bond markets. The yield of 10-year Treasuries climbed above the 5.15% level, while the yield of 30-year Treasuries settled above 5.45%.
The nearest resistance level for U.S. Dollar Index is located in the 101.50 – 101.65 range. In case U.S. Dollar Index manages to settle above the 101.65 level, it will head towards the next resistance at 102.35 – 102.50.
EUR/USD Is Losing Ground As Traders Focus On Debt Markets
EUR/USD pulled back despite the better-than-expected Ifo Business Climate report from Germany. The report showed that Ifo Business Climate increased from 88.8 in August to 89.9 in September, compared to analyst consensus of 89. From a big picture point of view, traders are mostly focused on the dynamics of bond markets.
If EUR/USD declines below the support at 1.1335 – 1.1350, it will head towards the next support level at 1.1250 – 1.1265. RSI is in the oversold territory, so the risk of a rebound are rising.
GBP/USD Tests New Lows
GBP/USD remains under pressure as traders stay focused on hawkish Fed policy outlook. FedWatch Tool indicates that there is a 68.6% probability that Fed will raise rates at the next meeting in October.
If GBP/USD declines below the 1.3200 level, it will head towards the nearest support, which is located in the 1.3150 – 1.3165 range. On the upside, a move above the 1.3250 level will open the way to the test of the resistance level at 1.3285 – 1.3300. In case GBP/USD climbs above 1.3300, it will head towards the 50 MA at 1.3376.
EUR/USD Price Forecast
Every new EUR/USD analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all EUR/USD forecastsUSD/CAD Tests Resistance At 1.4135 – 1.4150
USD/CAD continues to move higher as traders focus on rising oil markets. Demand for commodity-related currencies declines as high oil prices may hurt global economic growth and reduce demand for commodities.
Currently, USD/CAD is trying to settle above the resistance level at 1.4135 – 1.4150. In case USD/CAD manages to settle above the 1.4150 level, it will head towards the next resistance level at 1.4235 – 1.4250. Traders should note that RSI remains in the overbought territory, although there is some room to gain additional upside momentum in the near term.
USD/JPY Gains Ground Amid Rising Treasury Yields
USD/JPY is moving higher as traders focus on rising Treasury yields and react to PMI reports from Japan. Manufacturing PMI declined from 54.9 in August to 54.1 in September, compared to analyst forecast of 55. Services PMI decreased from 52.5 to 51.6, compared to analyst consensus of 52.7. Numbers above 50 show expansion.
From the technical point of view, USD/JPY attempts to settle above the resistance level at 158.00 – 158.50. If USD/JPY manages to settle above the 158.00 level, it will head towards the next resistance level, which is located in the 160.00 – 160.50 range.
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