U.S. Dollar Retreats From Session Highs As CB Consumer Confidence Misses Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Is Flat As CB Consumer Confidence Drops To 89.4

U.S. Dollar Index is mostly flat as traders react to the weaker-than-expected CB Consumer Confidence report. The report indicated that CB Consumer Confidence declined from 90.2 (revised from 90.8) in July to 89.4 in August, compared to analyst forecast of 90.2.

Traders also had a chance to take a look at the New Home Sales report for July. The report showed that New Home Sales decreased by -10.5% month-over-month, compared to analyst consensus of -1.3%.

The nearest support level for U.S. Dollar Index is located in the 98.60 – 98.75 range. In case U.S. Dollar Index pulls back below the 98.60 level, it will head towards the next support at 97.85 – 98.00.

EUR/USD Moves Higher As Germany’s Ifo Business Climate Report Beats Estimates

EUR/USD gained some ground as traders reacted to the better-than-expected Ifo Business Climate report from Germany. The report indicated that Business Climate improved from 86.7 (revised from 86.6) in July to 88.8 in August, compared to analyst forecast of 87.2.

In case EUR/USD stays above the 1.1650 level, it will head towards the nearest resistance at 1.1685 – 1.1700. A successful test of this level will open the way to the test of the next resistance at 1.1775 – 1.1790.

GBP/USD Remains Stuck Near Strong Resistance Level

GBP/USD continues its attempts to settle above the resistance level at 1.3635 – 1.3650. There are no important economic reports scheduled to be released in the UK today, so traders will stay focused on general market sentiment.

If GBP/USD climbs above the 1.3650 level, it will move towards the resistance level at 1.3720 – 1.3735. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

On the support side, a move below the 1.3620 level will push GBP/USD towards the 50 MA at 1.3584. In case GBP/USD settles below the 50 MA, it will head towards the support at 1.3550 – 1.3565.

USD/CAD Moves Away From Session Highs

USD/CAD pulls back as traders take some profits off the table after the recent rebound. Precious metals markets are losing ground, but this move does not put pressure on the Canadian dollar. Other commodity-related currencies are also moving higher in today’s trading session.

In case USD/CAD pulls back below the 1.3825 level, it will head towards the support level, which is located in the 1.3735 – 1.3750. On the upside, a move above the 1.3865 level will open the way to the test of the resistance level at 1.3900 – 1.3915.

USD/JPY Gains Ground As Traders Ignore Falling Treasury Yields

USD/JPY managed to gain some ground despite the pullback in Treasury yields. The yield of 2-year Treasuries declined towards the 4.20% level, while the yield of 10-year Treasuries pulled back below 4.65%. Traders stay focused on the fundamental weakness of the Japanese yen despite the risk of interventions from the Bank of Japan.

The nearest resistance level for USD/JPY is located in the 159.50 – 160.00 range. If USD/JPY climbs above the 160.00 level, it will head towards the next resistance at 161.50 – 162.00.

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