U.S. Dollar Stays Close To Recent Lows: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests The 99.50 Level

U.S. Dollar Index continues its attempts to settle below the 99.50 level as traders focus on Fed policy outlook.

In case U.S. Dollar Index manages to settle below the 99.50 level, it will head towards the support at 98.85 – 99.00.

EUR/USD Attempts To Climb Above 1.1600

EUR/USD attempts to settle above the resistance at 1.1585 – 1.1600 as traders react to GfK Consumer Confidence report from Germany. The report showed that Consumer Confidence improved from -24.1 in November to -23.2 in December, in line with analyst estimates.

If EUR/USD settles above the 1.1600 level, it will move towards the next resistance, which is located in the 1.1715 – 1.1730 range.

GBP/USD Stays Close To Weekly Highs

GBP/USD settled near the resistance at 1.3245 – 1.3260 as traders remained focused on UK budget, which was released on Wednesday.

A successful test of the resistance at 1.3245 – 1.3260 will open the way to the test of the next resistance level at 1.3360 – 1.3375. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

USD/CAD Retreats Amid Strong Demand For Commodity-Related Currencies

USD/CAD remains under pressure amid rising demand for commodity-related currencies. Currently, USD/CAD is trying to settle below the 1.4030 level.

In case this attempt is successful, USD/CAD will head towards the nearest support level at 1.3975 – 1.3990.

USD/JPY Pulls Back Amid Lack Of Strong Catalysts

USD/JPY is losing some ground as traders wait for additional catalysts. From a big picture point of view, traders stay focused on the ultra-dovish BoJ policy. However, recent changes in Fed policy outlook put some pressure on USD/JPY.

If USD/JPY declines below the 156.00 level, it will move towards the support level, which is located in the 154.50 – 155.00 range.

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