U.S. Dollar Retreats On Profit-Taking: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Pulls Back From Yearly Highs

U.S. Dollar Index is losing ground as traders take some profits off the table after the strong rally and react to the pullback in Treasury yields.

The yield of 2-year Treasuries declined below the 4.80% level, while the yield of 10-year Treasuries settled near 5.27%.

The nearest support level for U.S. Dollar Index is located in the 101.50 – 101.65 range. If U.S. Dollar Index manages to settle below the 101.50 level, it will head towards the next support, which is located in the 100.75 – 100.90 range.

Markets Rally as Oil and Bond Yields Fall, AI Optimism Holds

EUR/USD Rebounds As Traders Buy The Dip

EUR/USD gains ground despite the disappointing Euro Area Retail Sales report. The report showed that Euro Area Retail Sales increased by +0.1% month-over-month in August, compared to analyst forecast of +0.2%.

Traders also had a chance to take a look at Germanys Factory Orders report. the report indicated that Factory Orders declined by -10.6% month-over-month in August, compared to analyst forecast of -1%.

Currently, EUR/USD is trying to settle above the resistance at 1.1250 – 1.1265. In case this attempt is successful, EUR/USD will head towards the 50 MA at 1.1310. If EUR/USD climbs above the 50 MA, it will move towards the next resistance level, which is located in the 1.1335 – 1.1350 range.

GBP/USD Tests Resistance At 1.3285 – 1.3300

GBP/USD gained ground as traders reacted to falling Treasury yields and focused on general weakness of the American currency.

EUR/USD Price Forecast

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GBP/USD climbed above the 50 MA at 1.3234 and is trying to settle above the resistance level at 1.3285 – 1.3300. If this attempt is successful, GBP/USD will move towards the next resistance, which is located in the 1.3385 – 1.3400 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD Pulls Back As Traders Take Profits After Rally

USD/CAD moved away from recent highs as traders have started to take profits after a multi-day rally. Other commodity-related currencies have also gained ground in todays trading session.

If USD/CAD styas below the 1.4235 level, it will head towards the 50 MA at 1.4204. A move below the 50 MA will open the way to the test of the support level at 1.4135 – 1.4150.

On the upside, USD/CAD needs to settle back above the 1.4250 level to have a chance to gain upside momentum in the near term. In this case, USD/CAD will move towards the next resistance at 1.4350 – 1.4365.

USD/JPY Gains Ground As Traders React To Uedas Speech

USD/JPY remains stuck near resistance at 158.00 – 158.50 despite the pullback in Treasury yields. Id note that USD/JPY has become less sensitive to Treasury yield dynamics in recent trading sessions.

Today, traders focused on BoJ Governor Ueda speech. Ueda said that BoJ would continue to raise the interest rate.

If USD/JPY climbs above the 158.50 level, it will move towards the next resistance level at 160.00 – 160.50. On the support side, a move below the 50 MA at 157.76 will push USD/JPY towards the 157.00 level. If USD/JPY settles below 157.00, it will head towards the support level at 155.00 – 155.50.

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