U.S. Dollar Tests New Highs As Retail Sales Exceed Expectations: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index Is Heading Towards 99.00

U.S. Dollar Index gains ground as traders react to the better-than-expected Retail Sales report. The report indicated that Retail Sales increased by +0.6% month-over-month in June, compared to analyst forecast of +0.1%.

In case U.S. Dollar Index moves above the 99.00 level, it will head towards the nearest resistance level at 99.20 – 99.40.

EUR/USD Tests New Lows

EUR/USD is trying to settle below the support level at 1.1575 – 1.1590 as traders focus on U.S. economic reports.

A move below the 1.1575 level will open the way to the test of the next support level, which is located in the 1.1450 – 1.1465 range.

GBP/USD Retreats As UK Unemployment Rate Rises To 4.7%

GBP/USD remains stuck near the support level at 1.3370 – 1.3390 as traders react to Unemployment Rate report from the UK. The report indicated that Unemployment Rate increased from 4.6% in April to 4.7% in May, compared to analyst forecast of 4.6%.

If GBP/USD manages to settle below 1.3370, it will head towards the support level at 1.3250 – 1.3270. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD Tests Resistance At 1.3735- 1.3750

USD/CAD attempts to settle above the resistance at 1.3735 – 1.3750 as demand for commodity-related currencies declines.

In case this attempt is successful, USD/CAD will head towards the next resistance level at 1.3845 – 1.3860.

USD/JPY Gains Ground As Traders Bet On Hawkish Fed

USD/JPY is moving higher as traders bet that Fed would be more hawkish than previously expected. The encouraging U.S. economic data provides support to the American currency.

If USD/JPY climbs above the 149.00 level, it will head towards the resistance level at 151.00 – 151.50.

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