U.S. Dollar Is Mostly Flat Amid Lack Of Strong Catalysts
U.S. Dollar Index is swinging between gains and losses as traders focus on dynamics of Treasury yields. The yield of 2-year Treasuries climbed towards the 4.79% level, while the yield of 10-year Treasuries pulled back below 5.11%. Bond traders are not ready for big moves, and it looks that the market is already waiting for Fed decision, which will be released next week.
The nearest support level for U.S. Dollar Index is located in the 101.50 – 101.65 range. A move below the 101.50 level will open the way to the test of the next support at 100.85 – 101.00.
EUR/USD Stays Range-Bound Despite Sell-Off In French Debt Markets
EUR/USD is mostly flat as traders focus on the situation in French debt markets. The yield of 10-year French government bonds climbed above the psychologically important 5.00% level. Traders are worried that French protests will force the country to boost spending, which would push yields even higher.
In case EUR/USD manages to settle above the resistance at 1.1250 – 1.1265, it will head towards the next resistance level at 1.1350 – 1.1365. On the support side, a move below the 50 MA at 1.1206 will open the way to the test of the next support at 1.1175 – 1.1190.
GBP/USD Gains Ground As UK Inflation Rate Exceeds Estimates
GBP/USD is moving higher as traders focus on inflation data from the UK. Inflation Rate increased from 3.1% in August to 3.5% in September, compared to analyst forecast of 3.4%. Core Inflation Rate grew from 2.6% to 2.8%, while analysts expected that it would increase to 2.7%.
Currently, GBP/USD is trying to settle above the resistance level at 1.3385 – 1.3400. In case this attempt is successful, GBP/USD will head towards the next resistance level, which is located in the 1.3485 – 1.3500 range. I’d note that RSI is in the overbought territory, so the risks of a pullback are rising.
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 forecastsUSD/CAD Failed To Climb Above 1.4080
USD/CAD is swinging between gains and losses as traders focus on dynamics of commodity markets. Gold is mostly flat in today’s trading session, while silver pulled back by -0.8%. Oil prices are losing some ground as traders wait for news from the Middle East. Other commodity-related currencies are moving higher in today’s trading session.
USD/CAD has recently made an attempt to settle above the resistance level at 1.4070 – 1.4085 but failed to develop sufficient upside momentum and pulled back. In case USD/CAD climbs above the 1.4085 level, it will head towards the next resistance, which is located in the 1.4135 – 1.4150 range.
USD/JPY Remains Stuck In A Tight Range
USD/JPY remains stuck near key resistance at 158.00 – 158.50 as traders are not ready for big moves ahead of next week’s central bank meetings. Fed and BoJ will release their interest rate decisions next week.
From the technical point of view, USD/JPY stays range-bound. Most likely, USD/JPY will need additional catalysts to get out of the current trading range. It remains to be seen whether traders will be ready to react to economic reports or prefer to wait for Fed decision, which will be released on October 28.
If you’d like to know more about how to trade forex, please visit our educational area.