U.S. Dollar Tests New Highs Ahead Of FOMC Minutes: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Tests Resistance At 98.85 – 99.00

U.S. Dollar Index gains ground as traders wait for FOMC Minutes, which will be released soon.

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

EUR/USD Retreats As Germany’s Industrial Production Falls By 4.3%

EUR/USD remains under pressure as traders focus on the weaker-than-expected Industrial Production report from Germany. The report indicated that Industrial Production declined by -4.3% month-over-month in August, compared to analyst forecast of -1%.

A successful test of the support at 1.1585 – 1.1600 will open the way to the test of the next support level at 1.1450 – 1.1465.

GBP/USD Pulled Back Below The 1.3400 Level

GBP/USD pulled back as traders focused on general strength of the American currency.

The nearest support level for GBP/USD is located in the 1.3335 – 1.3350 range. A move below the 1.3335 level will push GBP/USD towards the next support at 1.3150 – 1.3165.

USD/CAD Is Flat As Traders Ignore The Rally In Gold And Silver Markets

USD/CAD stays range-bound despite the strong rally in precious metals markets. Spot gold climbed above the $4000 level, while silver moved above the $49.00 level.

In case USD/CAD declines below the support at 1.3910 – 1.3925, it will move towards the next support at 1.3845 – 1.3860.

USD/JPY Tests The 153.00 Level

USD/JPY tested new highs as traders remained focused on the results of Japan ruling party elections. Traders expect that BoJ will be more dovish than previously expected.

If USD/JPY climbs above the 153.00 level, it will head towards the resistance at 154.50 – 155.00. RSI is in the overbought territory, so the risks of a pullback are increasing.

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