U.S. Dollar Moves Higher As Durable Goods Orders Exceed Expectations: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher On Strong Economic Data

U.S. Dollar Index gains ground as traders react to the better-than-expected Durable Goods Orders report. The report showed that Durable Goods Orders increased by +1.8% month-over-month in September, compared to analyst forecast of +1.5%.

Traders also had a chance to take a look at the CB Consumer Confidence report. The report indicated that Consumer Confidence improved from 84.2 in September to 91.7 in October, while analysts expected that it would drop to 81.

U.S. Dollar Index climbed above the 102.00 level and is moving towards the resistance level at 102.35 – 102.50. In case U.S. Dollar Index climbs above the 102.50 level, it will head towards the next resistance, which is located in the 103.15 – 103.30 range.

EUR/USD Tests New Lows

EUR/USD is losing ground as traders focus on economic reports from the U.S. and prepare for Fed Interest Rate Decision, which will be released tomorrow.

FedWatch Tool indicates that there is a 90.6% probability that Fed will leave the federal funds rate unchanged. Traders will be mostly focused on comments from Fed Chair Warsh as Fed is expected to continue the rate hike cycle in December.

EUR/USD declined below the support at 1.1175 – 1.1190 and is trying to settle below the 1.1150 level. In case this attempt is successful, EUR/USD will move towards the next support at 1.1110 – 1.1115.

GBP/USD Remains Under Pressure

GBP/USD is losing ground as traders focus on general strength of the American currency and prepare for Fed decision. The pullback in the oil markets did not provide support to the British pound in today’s trading session.

The nearest support level for GBP/USD is located in the 1.3285 – 1.3300 range. If GBP/USD pulls back below the 1.3285 level, it will head towards the next support at 1.3185 – 1.3200. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

USD/CAD Gains Ground As Rebound Continues

USD/CAD is moving higher despite rising precious metals markets. Gold and silver are up by roughly 1% amid pullback in the oil markets. Other commodity-related currencies managed to gain some ground in today’s trading session.

If USD/CAD climbs above the 1.4050 level, it will head towards the resistance level at 1.4070 – 1.4085. A successfulu test of this level will open the way to the test of the next resistance, which is located in the 1.4150 – 1.4165 range.

USD/JPY Moves Higher As Traders Prepare For Fed Decision

USD/JPY gains ground as traders place their final bets ahead of Fed Interest Rate Decision. Treasury yields are mostly flat as bond traders are not ready for big moves ahead of the key event of the week.

USD/JPY needs to settle above the strong resistance level at 158.00 – 158.50 to gain upside momentum in the near term. This resistance level has been tested many times and proved its strength. If USD/JPY settles above 158.50, it will move towards the next resistance at 160.00 – 160.50.

If you’d like to know more about how to trade forex, please visit our educational area.