U.S. Dollar Pulls Back From Session Highs As Traders Focus On PMI Reports: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats From Session Highs

U.S. Dollar Index is mostly flat as traders react to Composite PMI report. The report indicated that Composite PMI declined from 54.6 in August to 53.6 in September, compared to analyst forecast of 54.6. Numbers above 50 show expansion.

In case U.S. Dollar Index settles below the nearest support at 97.10 – 97.30, it will head towards the next support, which is located in the 96.40 – 96.55 range.

EUR/USD Settled Near The 1.1800 Level

EUR/USD pulled back as traders focused on the disappointing Euro Area Manufacturing PMI report. The report showed that Euro Area Manufacturing PMI pulled back from 50.7 in August to 49.5 in September.

A move below the 50 MA at 1.1778 will push EUR/USD towards the next support level at 1.1685 – 1.1700.

GBP/USD Tested New Highs As Traders Focused On PMI Data

GBP/USD gained some ground despite the disappointing UK Manufacturing PMI report, which showed that Manufacturing PMI decreased from 47.0 in August to 46.2 in September, compared to analyst forecast of 47.1.

If GBP/USD settles above 1.3530, it will move towards the 50 MA at 1.3565. A successful test of the 50 MA will open the way to the test of the resistance level at 1.3585 – 1.3600.

USD/CAD Is Moving Towards The Resistance At 1.3845 – 1.3860

USD/CAD continues to move higher as traders ignore rising commodity markets. Other commodity-related currencies are mixed in today’s trading session.

The nearest resistance level for USD/CAD is located in the 1.3845 – 1.3860 range. In case USD/CAD climbs above the 1.3860 level, it will head towards the next resistance at 1.3910 – 1.3925.

USD/JPY Is Flat Amid Lack Of Strong Catalysts

USD/JPY is stuck in a tight range as traders wait for additional catalysts. Treasury yields are moving lower, but this move does not put pressure on USD/JPY.

The technical picture remains unchanged as USD/JPY needs to settle above the 148.00 level to gain additional upside momentum in the near term.

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