U.S. Dollar Pulls Back As ISM Manufacturing PMI Drops To 48.2: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Remains Under Pressure

U.S. Dollar Index rebounded from session lows as traders reacted to the weaker-than-expected ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI declined from 48.7 in October to 48.2 in November, compared to analyst forecast of 48.6.

The nearest support level for U.S. Dollar Index is located in the 98.85 – 99.00 range. A move below the 98.85 level will push U.S. Dollar Index towards the next support at 98.00 – 98.15.

EUR/USD Tested The 1.1650 Level

EUR/USD tested new highs as traders focused on the ISM report from the U.S. Currently, EUR/USD is trying to settle above the resistance at 1.1585 – 1.1600.

In case this attempt is successful, EUR/USD will move towards the next resistance level at 1.1715 – 1.1730.

GBP/USD Tested New Highs

GBP/USD continues its attempts to settle above the resistance at 1.3250 – 1.3265 as traders focus on general weakness of the American currency.

If GBP/USD manages to settle above the 1.3265 level, it will move towards the resistance at 1.3360 – 1.3375.

USD/CAD Attempts To Rebound

USD/CAD gained some ground as traders reacted to Manufacturing PMI report from Canada. The report showed that Manufacturing PMI decreased from 49.6 in October to 48.4 in November, compared to analyst consensus of 50.4. Numbers below 50 show contraction.

If USD/CAD climbs back above the 1.4000 level, it will move towards the 50 MA at 1.4058.

USD/JPY Retreats As Ueda Signals BoJ Is Ready To Hike Rates

USD/JPY pulled back as traders reacted to hawkish comments from BoJ Governor Ueda, who signaled that central bank was ready to raise rates.

A successful test of the support at 154.50 – 155.00 will push USD/JPY towards the next support level at 151.00 – 151.50. RSI climbed back into the moderate territory, so there is enough room to gain momentum in the near term.

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