U.S. Dollar Advances: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:

Vladimir Zernov

Published: Oct 17, 2024, 16:50 GMT+00:00

Key Points:

EUR/USD retreats as ECB cuts the interest rate from 3.65% to 3.40%.
USD/CAD is heading towards the 1.3800 level as traders focus on U.S. economic data.
USD/JPY moved above the 150.00 level amid rising Treasury yields.

U.S. Dollar Tests New Highs As Retail Sales Beat Expectations

DXY 171024 4h Chart

U.S. Dollar Index gains ground as traders react to the Retail Sales report. The report showed that Retail Sales increased by 0.4% month-over-month in September, compared to analyst consensus of +0.3%. Treasury yields moved higher as bond traders focused on the better-than-expected report, providing additional support to the American currency.

If U.S. Dollar Index stays above the 103.60 level, it will head towards the next resistance level, which is located in the 104.60 – 104.80 range.

EUR/USD Is Losing Ground As ECB Cuts Rates

EUR/USD 171024 4h Chart

EUR/USD tests new lows as traders focus on the ECB Interest Rate Decision. The ECB cut the interest rate from 3.65% to 3.4%, in line with analyst expectations. The ECB is worried about the slowdown of the European economy, although Christine Lagarde said that it was still on track for “soft landing”.

In case EUR/USD manages to settle below the 1.0800 level, it will get to the test of the support at 1.0765 – 1.0780. RSI is in the oversold territory, so the risks of a rebound are increasing.

GBP/USD Tries To Rebound From Multi-Week Lows

GBP/USD 171024 4h Chart

GBP/USD gained ground as some traders were ready to bet on a rebound after the pullback from September highs.

A move above the 1.3020 level will push GBP/USD towards the 50 MA at 1.3058.

USD/CAD Moves Higher As Traders Focus On U.S. Economic Reports

USD/CAD 171024 4h Chart

USD/CAD is moving higher as traders focus on U.S. economic data and react to the pullback in the oil markets.

A successful test of the resistance at 1.3800 – 1.3815 will open the way to the test of the next resistance level, which is located in the 1.3930 – 1.3950 range.

USD/JPY Gains Ground As Treasury Yields Rise

USD/JPY 171024 4h Chart

USD/JPY climbed above the psychologically important 150.00 level amid rising Treasury yields.

In case USD/JPY stays above 150.00, it will move towards the next resistance at 153.00 – 153.50.

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

About the Author

Vladimir Zernovauthor

In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.