U.S. Dollar Tests Weekly Highs: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Gains Ground As Traders Ignore Falling Treasury Yields

U.S. Dollar Index gains ground despite the pullback in Treasury yields. Demand for the American currency increased amid political problems in France.

In case U.S. Dollar Index manages to settle above the 98.50 level, it will head towards the nearest resistance, which is located in the 98.85 – 99.00 range.

EUR/USD Moves Lower As Traders Focus On France

EUR/USD remains under pressure as traders react to recent volatility in European bond markets. The yields have moved away from yesterday’s highs, but traders stay cautious.

A move below the 1.1650 level will open the way to the test of the support at 1.1585 – 1.1600.

GBP/USD Tested The 1.3400 Level

GBP/USD failed to settle above the resistance level at 1.3485 – 1.3500 and pulled back below the 1.3450 level.

In case GBP/USD declines below the 1.3400 level, it will move towards the support at September lows at 1.3335 – 1.3350. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in the near term.

USD/CAD Stays Range-Bound

USD/CAD remains stuck in a tight range as traders ignore the pullback in commodity markets. Today, traders also focused on Ivey PMI report from Canada. The report showed that Ivey PMI increased from 50.1 in August to 59.8 in September, compared to analyst forecast of 51.2.

If USD/CAD climbs above the 1.3970 level, it will move towards the resistance level at 1.4000 – 1.4015.

USD/JPY Keeps Moving Higher

USD/JPY tests resistance at 151.00 – 151.50 as traders react to Household Spending report from Japan. The report indicated that Household Spending increased by +0.6% month-over-month in August, compared to analyst forecast of +0.1%.

A move above the 151.50 level will open the way to the test of the next resistance level at 154.50 – 155.00.

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