U.S. Dollar Tests New Highs After Inflation Report: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Tests New Highs

U.S. Dollar Index tested new highs as traders reacted to inflation reports. Inflation Rate increased from 2.4% in September to 2.6% in October, in line with analyst consensus. Core Inflation Rate remained unchanged at 3.3%.

In case U.S. Dollar Index stays above the 106.00 – 106.15 level, it will move towards the next resistance level, which is located in the 107.10 – 107.30 range.

EUR/USD Pulled Back Below The 1.0600 Level

EUR/USD tests new lows as traders focus on the strength of the American currency and bet that ECB will be more dovish than Fed.

If EUR/USD stays below the 1.0600 level, it will head towards the nearest support at 1.0525 – 1.0540.

GBP/USD Tests New Lows As Pullback Continues

GBP/USD tests support at 1.2675 – 1.2700 as the strong pullback continues. RSI is in the oversold territory, so the risks of a rebound are increasing.

A move below the 1.2675 level will push GBP/USD towards the 1.2600 level.

USD/CAD Gains Ground As Precious Metals Retreat

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

A move above the 1.4000 level will push USD/CAD towards the next resistance at 1.4100 – 1.4120. RSI is in the moderate territory, so there is enough room to gain momentum in case the right catalysts emerge.

USD/JPY Tests Resistance At 155.00 – 155.50

USD/JPY is moving higher as traders focus on U.S. inflation data. Inflation Rate increased, and traders worry that Fed may be more hawkish than previously expected.

A successful test of the resistance at 155.00 – 155.50 will push USD/JPY towards the next resistance level, which is located in the 157.50 – 158.00 range.

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