U.S. Dollar Moves Higher Ahead Of The Weekend
U.S. Dollar Index gains ground as traders focus on PMI reports. Manufacturing PMI increased from 55.9 in September to 56.0 in October, compared to analyst forecast of 55.5. Services PMI decreased from 58.8 to 57.9, compared to analyst consensus of 58. Numbers above 50 show expansion.
Traders also had a chance to take a look at the Michigan Consumer Sentiment report. The report showed that Michigan Consumer Sentiment declined from 48.1 in September to 48.0 in October, compared to analyst forecast of 46.3.
In case U.S. Dollar Index manages to settle above the 50 MA at 101.89, it will head towards the next resistance level, which is located in the 102.35 – 102.50 range. On the support side, a successful test of the support at 101.50 – 101.65 will open the way to the test of the next support at 100.85 – 101.00.
EUR/USD Pulls Back As Oil Prices Test New Highs
EUR/USD is losing ground as traders focus on weaker-than-expected PMI data from the EU. Composite PMI decreased from 53.1 in September to 51.9 in October, compared to analyst forecast of 52.7.
Traders also focused on the strong rally in the oil markets. Oil prices gained 3% as traders worried that U.S. and Israel would restart the military operation against Iran this weekend. The rally in the oil markets served as a negative catalyst for the European currency.
Currently, EUR/USD is trying to settle below the support level at 1.1175 – 1.1190. In case this attempt is successful, EUR/USD will move towards the next support, which is located in the 1.1100 – 1.1115 range.
GBP/USD Retreats As UK Retail Sales Miss Estimates
GBP/USD is losing ground as traders focus on the disappointing UK Retail Sales report. The report showed that Retail Sales decreased by -0.4% month-over-month in September, compared to analyst forecast of -0.1%. On a year-over-year basis, UK Retail Sales grew by +0.8%.
EUR/USD Price Forecast
Every new EUR/USD analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all EUR/USD forecastsGBP/USD failed to settle above the resistance level at 1.3385 – 1.3400 and is trying to settle below the 1.3370 level. In case this attempt is successful, GBP/USD will head towards the 50 MA at 1.3323. A move below the 50 MA will open the way to the test of the support at 1.3285 – 1.3300.
USD/CAD Remains Under Pressure
USD/CAD tested new lows despite the pullback in precious metals markets. The rally in the oil markets did not put pressure on the Canadian dollar. Other commodity-related currencies have also gained some ground in today’s trading session.
In case USD/CAD manages to settle below the support level at 1.3985 – 1.4000, it will head towards the next support at 1.3900 – 1.3915. RSI has recently moved back into moderate territory, so there is enough room to gain momentum in the near term.
USD/JPY Rebounds As Treasury Yields Rise
USD/JPY moved higher as traders reacted to rising Treasury yields. The yield of 2-year Treasuries climbed towards the 4.68% level, while the yield of 10-year Treasuries settled near 4.99%.
If USD/JPY climbs back above the 157.00 level, it will head towards the strong resistance level at 158.00 – 158.50. On the support side, a move below the 156.00 level will open the way to the test of the support at 155.00 – 155.50.
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