U.S. Dollar Tests New Highs As Rebound Continues: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Moves Higher Amid Profit-Taking

U.S. Dollar Index gains ground as traders continue to reduce their short positions after Fed Interest Rate Decision.

U.S. Dollar Index settled above the previous resistance at 97.10 – 97.30 and is trying to settle above the 97.50 level. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance, which is located in the 98.00 – 98.20 range.

EUR/USD Tests The 1.1750 Level

EUR/USD is losing ground as traders focus on the Producer Prices report from Germany. The report indicated that Producer Prices declined by -2.2% year-over-year in August, compared to analyst forecast of -1.7%.

If EUR/USD stays below the 1.1750 level, it will head towards the support level at 1.1685 – 1.1700.

GBP/USD Retreats As Traders Focus On UK Budget Deficit

GBP/USD remains under pressure despite the better-than-expected UK Retail Sales report. The report showed that UK Retail Sales increased by +0.5% month-over-month in August, compared to analyst forecast of +0.3%. Traders ignored the data and focused on UK budget deficit.

A successful test of the support at 1.3485 – 1.3500 will push GBP/USD towards the next support level at 1.3335 – 1.3350.

USD/CAD Pulls Back As Canada’s Retail Sales Beat Estimates

USD/CAD moved lower as traders reacted to the better-than-expected Retail Sales report from Canada. The report indicated that Retail Sales increased by +1.0% month-over-month in August, compared to analyst consensus of +0.4%.

In case USD/CAD stays below the 1.3800 level, it will head towards the support at 1.3735 – 1.3750.

USD/JPY Is Stuck Near 148.00 As BoJ Keeps Rates Unchanged

USD/JPY is mostly flat as traders focus on BoJ Interest Rate Decision. The BoJ left the interest rate unchanged at 0.5%, in line with analyst estimates.

A move above the resistance at 147.50 – 148.00 will push USD/JPY towards the next resistance level at 151.00 – 151.50.

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