U.S. Dollar Slides As Traders Focus On Dovish Powell: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Remains Under Pressure

U.S. Dollar Index is losing ground as traders stay focused on recent comments from Fed Chair Powell, who signaled that he was concerned about the situation in the labor market.

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 move towards the next support level, which is located in the 98.00 – 98.20 range.

EUR/USD Gains Ground As Euro Area Industrial Production Beats Estimates

EUR/USD is moving higher as traders focus on the better-than-expected Euro Area Industrial Production report. The report indicated that Euro Area Industrial Production decreased by -1.2% month-over-month in August, compared to analyst forecast of -1.6%.

If EUR/USD manages to settle above the 50 MA at 1.1630, it will head towards the nearest resistance level at 1.1685 – 1.1700.

GBP/USD Rebounds From Multi-Week Lows

GBP/USD gains ground as traders focus on the pullback in UK government bond yields, which indicates that bond markets have finally calmed down.

A move above the 1.3400 level will open the way to the test of the resistance level at 1.3485 – 1.3500.

USD/CAD Remains Stuck Below 1.4050

USD/CAD is mostly flat despite the continuation of the strong rally in precious metals markets. Other commodity-related currencies are moving higher in today’s trading session.

A successful test of the support at 1.4000 – 1.4015 will push USD/CAD towards the next support level, which is located in the 1.3910 – 1.3925 range.

USD/JPY Tests Support At 151.00 – 151.50

USD/JPY continues its attempts to settle below the support at 151.00 – 151.50 as traders focus on changes in Fed policy outlook after Powell’s comments.

In case USD/JPY manages to settle below the 151.00 level, it will move towards the support at 147.50 – 148.00.

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