U.S. Dollar Tested New Highs As Industrial Production Beat Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tested Multi-Week Highs

U.S. Dollar Index stays close to multi-week highs as traders react to the better-than-expected Industrial Production report. The report indicated that Industrial Production increased by +0.4% month-over-month in December, compared to analyst forecast of +0.1%.

A move above the 99.50 level will open the way to the test of the nearest resistance at 100.25 – 100.40.

EUR/USD Remains Under Pressure

EUR/USD continues its attempts to settle below the 1.1600 level as traders bet on hawkish Fed.

In case EUR/USD manages to settle below 1.1600, it will head towards the next support, which is located in the 1.1500 – 1.1515 range. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in the near term.

GBP/USD Is Stuck Near Support At 1.3360 – 1.3375

GBP/USD tests support at 1.3360 – 1.3375 as traders focus on the strength of the American currency.

If GBP/USD pulls back below the 1.3360 level, it will move towards the next support level at 1.3255 – 1.3270.

USD/CAD Gains Ground As Precious Metals Markets Pull Back

USD/CAD tests new highs as traders react to the pullback in precious metals markets. Other commodity-related currencies are also losing ground in today’s trading session.

In case USD/CAD stays above the 1.3905 level, it will head towards the resistance, which is located in the 1.3980 – 1.3995 range.

USD/JPY Retreats As Traders Bet On Hawkish BoJ

USD/JPY retreats as traders ignore rising Treasury yields. The yield of 2-year Treasuries climbed towards the 3.60% level, while the yield of 10-year Treasuries settled near 4.20%. These moves did not provide support to USD/JPY as traders bet that BoJ may raise rates soon.

A move below the 50 MA at 157.83 will push USD/JPY towards the support at 154.50 – 155.00.

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