U.S. Dollar Retreats As ADP Report Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Retreats As ADP Report Highlights Job Losses

U.S. Dollar Index is losing ground as traders react to ADP Employment Change report. The report indicated that private businesses cut -32,000 jobs in November, compared to analyst forecast of +10,000. Traders bet that the situation in the job market will force the Fed to cut rates.

Currently, U.S. Dollar Index is trying to settle below the support at 98.85 – 99.00. In case this attempt is successful, U.S. Dollar Index will head towards the next support level, which is located in the 98.00 – 98.15 range.

EUR/USD Tests New Highs

EUR/USD is moving higher as traders focus on economic reports from the U.S. Dovish Fed policy outlook serves as the key positive catalyst for EUR/USD.

If EUR/USD stays above the 1.1650 level, it will move towards the nearest resistance level at 1.1715 – 1.1730.

GBP/USD Soars As Traders Focus On Weak Dollar

GBP/USD climbed above the previous resistance level at 1.3250 – 1.3265 and gained strong upside momentum. From technical point of view, GBP/USD is heading towards the resistance level at 1.3360 – 1.3375.

In case GBP/USD manages to climb above the 1.3375 level, it will head towards the next resistance at 1.3475 – 1.3490. It should be noted that RSI is in the overbought territory, so the risks of a pullback are increasing.

USD/CAD Attempts To Settle Below 1.3950

USD/CAD is losing ground as traders focus on general weakness of the American currency. Other commodity-related currencies are also moving higher in today’s trading session.

If USD/CAD stays below the support at 1.3975 – 1.3990, it will head towards the next support level at 1.3885 – 1.3900.

USD/JPY Pulls Back As Treasury Yields Decline

USD/JPY is losing ground as traders focus on the pullback in Treasury yields. The yield of 2-year Treasuries declined below the 3.50% level, while the yield of 10-year Treasuries declined below 4.08%.

A successful test of the support level at 154.50 – 155.00 will open the way to the test of the next support at 151.00 – 151.50.

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