U.S. Dollar Rallies As Trump Names Warsh As Fed Chair Pick: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As Traders Focus On Trump’s Fed Chair Pick

U.S. Dollar Index continues to rebound as traders react to Producer Prices report for December. PPI increased by +0.5% month-over-month, compared to analyst forecast of +0.2%. Core PPI grew by +0.7%, while analysts expected that it would increase by +0.2%. Traders also reacted to Trump’s decision to nominate Kevin Warsh to be the next Fed Chair.

In case U.S. Dollar Index stays above the resistance at 96.35 – 96.50, it will move towards the next resistance level, which is located in the 97.10 – 97.25 range.

EUR/USD Moves Lower As Pullback Continues

EUR/USD retreats despite the stronger-than-expected Euro Area GDP Growth Rate report. The report showed that GDP Growth Rate was +0.3% in the fourth quarter, compared to analyst forecast of +0.2%.

A successful test of the support at 1.1900 – 1.1915 will open the way to the test of the next support level at 1.1835 – 1.1850.

GBP/USD Tests Support At 1.3710 – 1.3730

GBP/USD is moving lower as traders continue to take profits after the strong rally and react to economic news from the U.S.

Currently, GBP/USD is trying to settle below the support at 1.3710 – 1.3725. In case this attempt is successful, GBP/USD will move towards the 50 MA at 1.3634.

USD/CAD Rebounds As Silver Dives 15%

USD/CAD gains ground as traders react to the major sell-off in precious metals markets. Silver is down by as much as 15% as traders rush to exit their long positions.

In case USD/CAD settles above the 1.3550 level, it will get to the test of the nearest resistance at 1.3575 – 1.3590.

USD/JPY Tests Resistance At 154.50 – 155.00

USD/JPY attempts to settle above the resistance at 154.50 – 155.00 as traders focus on the weak Retail Sales report from Japan. The report indicated that Retail Sales decreased by -0.9% year-over-year in December, compared to analyst forecast of +0.7%.

A move above the 155.00 level will push USD/JPY towards the resistance level at 158.00 – 158.50.

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