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U.S. Dollar Tests New Highs As ISM Services PMI Beats Estimates: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD is losing ground as traders focus on inflation data from the EU.
- USD/CAD tests resistance at 1.3650 - 1.3665 as precious metals markets pull back.
- USD/JPY attempts to settle above the 156.50 level.
U.S. Dollar Stays Strong As Traders React To ISM Services PMI
U.S. Dollar Index is moving higher as traders focus on the better-than-expected ISM Services PMI report. The report showed that ISM Services PMI declined from 54.4 in December to 53.8 in January, compared to analyst forecast of 53.5.
In case U.S. Dollar Index settles above the 97.70 level, it will head towards the next resistance, which is located in the 98.00 – 98.15 range.
EUR/USD Moves Lower As Euro Area Core Inflation Rate Drops To 2.2%
EUR/USD pulls back as traders react to inflation data from the EU. Euro Area Inflation Rate declined from 2% in December to 1.7% in January, in line with analyst estimates. Core Inflation Rate decreased from 2.3% to 2.2%, while analysts expected that it would remain unchanged.
A move below the 1.1800 level will push EUR/USD towards the support level at 1.1750 – 1.1765.
GBP/USD Tests The 1.3650 Level
GBP/USD made an attempt to settle above the resistance at 1.3710 – 1.3725 but lost momentum and pulled back towards the 1.3650 level.
If GBP/USD manages to settle below 1.3650, it will move towards the nearest support level at 1.3570 – 1.3585.
USD/CAD Attempts To Settle Above 1.3665
USD/CAD is moving higher amid pullback in precious metals markets. Other commodity-related currencies are also moving lower in today’s trading session.
Currently, USD/CAD is trying to settle above the resistance at 1.3650 – 1.3665. In case this attempt is successful, USD/CAD will move towards the next resistance at 1.3750 – 1.3765.
USD/JPY Tests New Highs
USD/JPY continues to move higher as traders bet that BoJ will not intervene to support the yen in the near term. The general rebound of the American currency provides additional support to USD/JPY.
In case USD/JPY manages to settle above the 157.00 level, it will head towards the next resistance level at 158.00 – 158.50.
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About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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