U.S. Dollar Moves Lower As Pullback Continues
U.S. Dollar Index is losing ground as traders react to housing market reports. Building Permits declined by -0.2% month-over-month in September, compared to analyst forecast of -0.7%. Housing Starts decreased by -5.2%, while analysts expected that they would increase by +1.9%.
Pending Home Sales report has also missed analyst expectations. The report showed that Pending Home Sales declined by -7.3% month-over-month in September, compared to analyst forecast of -0.5%. High interest rates continue to put pressure on the housing market.
Currently, U.S. Dollar Index is trying to settle below the support level at 101.50 – 101.65. In case this attempt is successful, U.S. Dollar Index will move towards the next support, which is located in the 100.85 – 101.00 range.
EUR/USD Gains Ground As Germany’s PPI Exceeds Estimates
EUR/USD moved higher despite the weaker-than-expected Euro Area Economic Sentiment Index report. The report indicated that Economic Sentiment declined from 25.8 in September to 18.5 in October, compared to analyst forecast of 23.6.
Traders also had a chance to take a look at Producer Prices data from Germany. PPI increased by +6.7% year-over-year in September, compared to analyst consensus of +5.3%.
The nearest resistance level for EUR/USD is located in the 1.1250 – 1.1265 range. If EUR/USD climbs above the 1.1265 level, it will head towards the next resistance at 1.1350 – 1.1365.
GBP/USD Tests Resistance At 1.3385 – 1.3400
GBP/USD is moving higher as traders react to the better-than-expected UK Unemployment Rate report. The report showed that UK Unemployment Rate declined from 4.9% in July to 4.7% in August, compared to analyst forecast of 4.9%.
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 forecastsA successful test of the resistance level at 1.3385 – 1.3400 will open the way to the test of the next resistance, which is located in the 1.3485 – 1.3500 range.
USD/CAD Tests New Lows
USD/CAD is losing ground as traders focus on the pullback in the oil markets. Other commodity-related currencies are also moving higher in today’s trading session.
USD/CAD declined below the support at 1.4070 – 1.4085 and is trying to settle below the 1.4050 level. In case this attempt is successful, USD/CAD will head towards the next support at 1.3985 – 1.4000.
On the upside, USD/CAD needs to settle back above the 1.4085 level to have a chance to gain upside momentum in the near term. In this case, USD/CAD will head towards the resistance level at 1.4135 – 1.4150. RSI is in the oversold territory, so the risks of a rebound are increasing.
USD/JPY Stays Range-Bound
USD/JPY remains stuck near key resistance at 158.00 – 158.50 as traders focus on Treasury yield dynamics. The yield of 2-year Treasuries climbed towards the 4.79% level, while the yield of 10-year Treasuries pulled back towards 5.12%.
In case USD/JPY declines below the 158.00 level, it will head towards the 157.00 level. A move below 157.00 will open the way to the test of the support at 155.00 – 155.50. RSI is in the moderate territory, so there is plenty of room to gain downside momentum in case the right catalysts emerge.
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