U.S. Dollar Rebounds From Weekly Lows: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground

U.S. Dollar Index gains ground as traders react to the Retail Sales report for August. The report indicated that Retail Sales increased by 0.1% month-over-month, compared to analyst consensus of -0.2%. Today, traders also had a chance to take a look at the Industrial Production report for August, which showed that Industrial Production increased by 0.8% on a month-over-month basis.

In case U.S. Dollar Index settles above the 101.00 level, it will move towards the nearest resistance level, which is located in the 102.00 – 102.20 range.

EUR/USD Pulls Back As ZEW Economic Sentiment Index Drops

EUR/USD is losing ground as traders focus on the weaker-than-expected Euro Area ZEW Economic Sentiment Index report. The report showed that Economic Sentiment declined from 17.9 in August to 9.3 in September, compared to analyst consensus of 16.3.

If EUR/USD settles back below 1.1110, it will head towards the 50 MA at 1.1072. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in the near term.

GBP/USD Retreats Amid Profit-Taking Ahead Of Fed Decision

GBP/USD found itself under strong pressure after an unsuccessful attempt to settle above the 1.3200 level.

A move below the support at 1.3120 – 1.3140 will open the way to the test of the next support level at 1.3025 – 1.3045.

USD/CAD Moves Higher As Traders React To Canada’s Inflation Data

USD/CAD remains stuck near the resistance at 1.3600 – 1.3620 as traders focus on inflation reports from Canada. Inflation Rate declined from 2.5% in July to 2% in August, compared to analyst consensus of 2.1%. Core Inflation Rate decreased from 1.7% to 1.5%.

From the technical point of view, USD/CAD needs to settle above the 1.3620 level to have a chance to gain sustainable upside momentum.

USD/JPY Rebounds From Multi-Month Lows

USD/JPY rebounds from recent lows as traders focus on rising Treasury yields, which have started to move higher after the release of U.S. Retail Sales data.

If USD/JPY manages to settle above the resistance at 141.80 – 142.50, it will head towards the next resistance level at 146.00 – 146.50.

For a look at all of today’s economic events, check out our economic calendar.