U.S. Dollar Moves Higher As Traders React To Housing Market Data: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher As Traders Ignore Weak Housing Market Data

U.S. Dollar Index gains some ground as traders react to economic reports. Housing Starts declined by -12.4% month-over-month in July, compared to analyst forecast of -4.7%. Building Permits increased by +5%, while analysts expected that they would grow by +1.2%.

Pending Home Sales decreased by -2.3% on a month-over-month basis, while analysts expected that they would grow by +0.3%.

Traders also had a chance to take a look at the Industrial Production report. The report showed that Industrial Production increased by +0.2% month-over-month in July, compared to analyst consensus of +0.3%.

In case U.S. Dollar Index settles above the 50 MA at 99.75, it will head towards the nearest resistance level at 99.85 – 100.00. On the support side, a successful test of the support at 99.25 – 99.40 will push U.S. Dollar Index towards the next support level at 98.60 – 98.75.

EUR/USD Gains Ground As Euro Area Economic Sentiment Beats Estimates

EUR/USD moved higher as traders reacted to the better-than-expected Euro Area ZEW Economic Sentiment Index report. The report indicated that Economic Sentiment improved from 23.4 in July to 31.4 in August, compared to analyst forecast of 25.4.

The nearest resistance level for EUR/USD is located in the 1.1600 – 1.1615 range. In case EUR/USD manages to settle above the 1.1615 level, it will head towards the next resistance, which is located in the 1.1685 – 1.1700 range.

GBP/USD Tests Resistance At 1.3550 – 1.3565

GBP/USD continues its attempts to settle above the resistance level at 1.3550 – 1.3565 as traders focus on the Unemployment Rate report from the UK. The report showed that Unemployment Rate remained unchanged at 4.9% in June, compared to analyst forecast of 4.8%.

In case GBP/USD climbs above the 1.3565 level, it will move towards the next resistance level, which is located in the 1.3635 – 1.3650 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD Rebounds As Precious Metals Markets Fall

USD/CAD gains ground as traders react to the pullback in precious metals markets. Gold declined below the $4400 level, while silver settled below $64.00. Other commodity-related currencies have also moved lower in today’s trading session.

If USD/CAD settles above the 1.3900 level, it will head towards the resistance level at 1.3920 – 1.3935. A move above the 1.3935 level will push USD/CAD towards the 1.4000 level.

On the support side, USD/CAD needs to settle below the support at 1.3825 – 1.3840 to have a chance to gain downside momentum in the near term. In this case, USD/CAD will head towards the next support at 1.3735 – 1.3750.

USD/JPY Attempts To Settle Above 159.50

USD/JPY tests key resistance at 159.50 – 160.00 as traders focus on the fundamental weakeness of the Japanese currency. However, traders remain cautious as BoJ may intervene to provide additional support to the yen.

If USD/JPY climbs above the 160.00 level, it will head towards the next resistance level at 161.50 – 162.00. A move above 162.00 will open the way to the test of the 164.00 level.

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