U.S. Dollar Retreats As Oil Markets Test New Lows
U.S. Dollar Index is losing ground as traders focus on the strong pullback in the oil markets, which is driven by Iran deal hopes. Demand for safe-haven assets declined, which was bearish for the American currency.
Currently, U.S. Dollar Index is trying to settle below the 50 MA at 101.81. In case this attempt is successful, U.S. Dollar Index will move towards the next support, which is located in the 101.50 – 101.65 range. A successful test of the support at 101.50 – 101.65 will open the way to the test of the next support level at 100.85 – 101.00.
EUR/USD Gains Ground As Germany’s Exports Beat Estimates
EUR/USD rallied as traders reacted to the sell-off in the oil markets and focused on the Exports report from Germany. The report indicated that Germany’s Exports increased by +2% month-over-month in September, compared to analyst consensus of +0.5%.
EUR/USD climbed above the resistance at 1.1175 – 1.1190 and is trying to settle above the 1.1200 level. If EUR/USD manages to settle above 1.1200, it will head towards the next resistance, which is located in the 1.1250 – 1.1265 range.
GBP/USD Moves Higher Amid Rising Demand For Risk Assets
GBP/USD gained ground as traders focused on general weakness of the American currency. There are no important economic reports scheduled to be released in the UK today, so traders will stay focused on general market sentiment.
From the technical point of view, GBP/USD moved above the resistance level at 1.3385 – 1.3400 and made an attempt to settle above the 1.3420 level. If GBP/USD moves above the 1.3420 level, it will head towards the resistance level at 1.3485 – 1.3500. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.
EUR/USD Price Forecast
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See all EUR/USD forecastsUSD/CAD Tests The 1.4130 Level
USD/CAD moved higher despite the rally in precious metals markets. Gold gained +1.1%, while silver was up by +1.4%. Other commodity-related currencies managed to gain strong upside momentum, supported by the pullback in the oil markets. Lower oil prices are bullish for commodity-related currencies as global economic growth may increase, boosting demand for commodities.
The nearest resistance level for USD/CAD is located in the 1.4155 – 1.4170 range. A move above the 1.4170 level will push USD/CAD towards the resistance level at 1.4275 – 1.4290. RSI is close to the overbought territory, but there is enough room to gain momentum in case the right catalysts emerge.
USD/JPY Stays Range-Bound
USD/JPY remains stuck near key resistance level at 158.00 – 158.50 despite rising Treasury yields. The yield of 2-year Treasuries climbed above the 4.56% level, while the yield of 10-year Treasuries settled above 4.87%.
Bulls remain worried that Bank of Japan may intervene to provide support to the Japanese yen in case USD/JPY climbs above 158.50 and moves towards the psychologically important 160.00 level.
USD/JPY has been trying to settle above the 158.50 level since late September, but these attempts yielded no results. As a result, USD/JPY stays range-bound. Most likely, it will need major catalysts to gain upside momentum.
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