U.S. Dollar Retreats As Pullback Continues: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests The 98.50 Level

U.S. Dollar Index is losing ground as traders focus on Philadelphia Fed Manufacturing Index report. The report indicated that Philadelphia Fed Manufacturing Index decreased from 23.2 in September to -12.8 in October, compared to analyst forecast of 10.

In case U.S. Dollar Index settles below the 98.50 level, it will head towards the nearest support, which is located in the 98.00 – 98.20 range.

EUR/USD Gains Ground As Rebound Continues

EUR/USD continues to move higher as traders focus on dovish Fed policy outlook. Currently, EUR/USD is heading towards the resistance at 1.1685 – 1.1700.

A move above the 1.1700 level will push EUR/USD towards the next resistance at 1.1775 – 1.1790.

GBP/USD Tests New Highs As Traders Focus On UK GDP Data

GBP/USD gains ground as traders react to UK GDP report. The report indicated that UK GDP increased by +0.1% month-over-month in August, in line with analyst estimates. UK Industrial Production grew by +0.4%, compared to analyst forecast of +0.2%.

If GBP/USD manages to settle above the resistance at 1.3485 – 1.3500, it will head towards the next resistance level, which is located in the 1.3650 – 1.3665 range.

USD/CAD Is Mostly Flat As Traders Ignore The Rally In Precious Metals Markets

USD/CAD remains stuck below the 1.4050 level despite the strong rally in precious metals markets.

A move above the 1.4050 level will push USD/CAD towards the resistance level at 1.4080 – 1.4095.

USD/JPY Is Under Pressure As Treasury Yields Fall

USD/JPY pulled back towards the 150.50 level as traders focused on falling Treasury yields. The yield of 2-year Treasuries pulled back below the 3.45% level, while the yield of 10-year Treasuries declined towards 4.00%.

In case USD/JPY stays below the support at 151.00 – 151.50, it will head towards the next support level, which is located in the 147.50 – 148.00 range.

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