U.S. Dollar Tests Multi-Month Highs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs

U.S. Dollar Index is moving higher as traders stay focused on problems of the European economy. Short-covering may have also provided material support to the American currency.

U.S. Dollar Index climbed above the resistance at 98.85 – 99.00 and is trying to settle above the 99.50 level. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located in the 100.00 – 100.15 range.

EUR/USD Retreats As Traders Focus On Problems In Germany’s Economy

EUR/USD is under pressure as traders react to the weaker-than-expected Exports report from Germany. The report indicated that Exports declined by -0.5% month-over-month in August, compared to analyst forecast of +0.3%. Put simply, the report highlighted the slowdown of the export-oriented economy of Germany.

If EUR/USD stays below the support at 1.1585 – 1.1600, it will head towards the next support level at 1.1450 – 1.1465.

GBP/USD Tests The 1.3300 Level

GBP/USD tests new lows as traders remain worried about the health of UK finances.

A successful test of the support at 1.3330 – 1.3350 will push GBP/USD towards the next support level at 1.3150 – 1.3165.

USD/CAD Gains Ground As Commodity Markets Pull Back

USD/CAD rallied as traders focused on the strong pullback in commodity markets. Other commodity-related currencies have also moved lower in today’s trading session.

A move above the resistance at 1.4000 – 1.4015 will open the way to the test of the resistance at 1.4080 – 1.4095.

USD/JPY Attempts To Climb Above The 153.00 Level

USD/JPY keeps moving higher as traders focus on rising Treasury yields and bet on dovish BoJ.

In case USD/JPY settles above the 153.00 level, it will gain additional upside momentum and move towards the resistance at 154.50 – 155.00. Traders should note that RSI is in the overbought territory, so the risks of a pullback are increasing.

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