U.S. Dollar Retreats Ahead Of U.S. Elections: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

By:

Vladimir Zernov

Published: Nov 4, 2024, 16:55 GMT+00:00

Key Points:

EUR/USD made an attempt to settle above the 1.0900 level.
USD/CAD pulled back as oil markets rallied.
USD/JPY moved lower as traders focused on the pullback in Treasury yields.

U.S. Dollar Is Losing Ground At The Start Of The Week

DXY 041124 4h Chart

U.S. Dollar Index is losing ground as traders take profits off the table ahead of U.S. elections. Today, traders also focused on the Factory Orders report. The report showed that Factory Orders declined by 0.5% month-over-month in September, compared to analyst consensus of -0.4%.

In case U.S. Dollar Index settles below the support level at 103.40 – 103.60, it will head towards the next support at 102.55 – 102.70.

EUR/USD Gains Ground As Euro Area Manufacturing PMI Beats Expectations

EUR/USD 041124 4h Chart

EUR/USD is moving higher as traders focus on the Euro Area Manufacturing PMI report. The report showed that Manufacturing PMI improved from 45.0 in September to 46.0 in October, compared to analyst forecast of 45.9.

A move above the resistance at 1.0900 – 1.0915 will push EUR/USD towards the next resistance level at 1.1000 – 1.1015.

GBP/USD Moves Away From Session Highs

GBP/USD 041124 4h Chart

GBP/USD moved away from session highs despite the strong pullback in Treasury yields.

Currently, GBP/USD is trying to settle back below the 50 MA at 1.2960. In case this attempt is successful, GBP/USD will head towards the next support level at 1.2870 – 1.2880.

USD/CAD Pulls Back As Traders Focus On The Rally In The Oil Markets

USD/CAD 041124 4h Chart

USD/CAD is losing ground as traders focus on general weakness of the U.S. dollar and the rally in the oil markets.

A move below the 50 MA at 1.3891 will push USD/CAD towards the next support level, which is located in the 1.3800 – 1.3815 range.

USD/JPY Is Moving Lower Amid Profit-Taking

USD/JPY 041124 4h Chart

USD/JPY is moving lower as traders wait for the U.S. elections. From a big picture point of view, traders continue to take profits off the table near multi-month highs.

If USD/JPY manages to settle below the 152.00 level, it will gain additional downside momentum and move towards the nearest support at 149.50 – 150.00.

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.