U.S. Dollar Moves Away From Yearly Highs
U.S. Dollar Index pulls back as traders react to the Existing Home Sales report and focus on dynamics of Treasury yields.
Existing Home Sales increased by +1.5% month-over-month in September, compared to analyst forecast of -0.3%.
The yield of 2-year Treasuries climbed above the 4.81% level as traders bet that Fed will raise rates in December to fight inflation. The yield of 10-year Treasuries declined towards 5.22% as demand for longer-dated bonds increased amid high yields.
If U.S. Dollar Index pulls back below the 50 MA at 102.17, it will head towards the nearest support level at 101.50 – 101.65. On the upside, a successful test of the resistance level at 102.35 – 102.50 will open the way to the test of the next resistance at 103.15 – 103.30.
EUR/USD Rebounds From Yearly Lows
EUR/USD gains ground as traders take some profits off the table after the strong move. Oil prices gained some ground amid escalation in the Middle East, so it remains to be seen whether EUR/USD will be able to gain additional upside momentum.
In case EUR/USD climbs above the 50 MA at 1.1213, it will head towards the resistance level at 1.1250 – 1.1265. On the support side, a move below the 1.1175 level will open the way to the test of the next support at 1.1075 – 1.1090.
EUR/USD Price Forecast
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See all EUR/USD forecastsGBP/USD Tests The 1.3250 Level
GBP/USD is moving higher as traders focus on BRC Retail Sales Monitor report. The report showed that Retail Sales increased by +1% year-over-year in September, compared to analyst consensus of +0.7%.
if GBP/USD climbs above the 1.3250 level, it will head towards the resistance level at 1.3285 – 1.3300. A move above 1.3300 will provide GBP/USD with a chance to gain additional upside momentum. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
USD/CAD Pulls Back Amid Strong Demand For Commodity-Related Currencies
USD/CAD is losing ground despite the pullback in precious metals markets. Gold continues its attempts to settle below the $4150 level, while silver pulled back towards the $59.00 level. Other commodity-related currencies are also moving higher in today’s trading session.
In case USD/CAD settles below the 1.4200 level, it will head towards the support at 1.4135 – 1.4150. On the upside, USD/CAD needs to settle back above the resistance at 1.4235 – 1.4250 to have a chance to gain upside momentum in the near term. In this case, USD/CAD will move towards the 1.4300 level.
USD/JPY Stays Range-Bound
USD/JPY remains stuck near the resistance level at 158.00 – 158.50 amid lack of strong catalysts. The yen remains fundamentally weak, but traders are worried that BoJ may interevene in case USD/JPY moves towards the 160.00 level.
If USD/JPY manages to settle above 158.50, it will head towards the next resistance level at 160.00 – 160.50. On the support side, a move below the 157.00 level will open the way to the test of the support at 155.00 – 155.50.
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