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U.S. Dollar Retreats As Retail Sales Miss Expectations: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY
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Key Points:
- EUR/USD climbed above the 1,0900 level as traders reacted to U.S. economic data.
- USD/CAD pulled back amid rising demand for commodity-related currencies.
- USD/JPY remained stuck below the resistance level at 149.00 - 149.50.
U.S. Dollar Tests Support At 103.20 – 103.40
U.S. Dollar Index is losing ground as traders react to the weaker-than-expected Retail Sales report. The report showed that Retail Sales increased by 0.2% month-over-month in February, compared to analyst forecast of +0.6%.
Currently, U.S. Dollar Index is trying to settle below the support at 103.20 – 103.40. In case this attempt is successful, U.S. Dollar Index will move towards the next support level at 102.00- 102.20.
EUR/USD Gains Ground At The Start Of The Week
EUR/USD gains ground as traders focus on U.S. economic data. NAHB Housing Market Index decreased from 42 in February to 39 in March, compared to analyst forecast of 42.
A succcessful test of the resistance at 1.0920 – 1.0935 will push EUR/USD towards the next resistance level at 1.1030 – 1.1050.
GBP/USD Tests New Highs
GBP/USD tests new highs as traders focus on falling Treasury yields and general weakness of the American currency.
If GBP/USD manages to climb above the 1.3000 level, it will head towards the next resistance level at 1.3050 – 1.3070.
USD/CAD Retreats Amid Strong Demand For Commodity-Related Currencies
USD/CAD pulled back as demand for commodity-related currencies increased. Currently, USD/CAD is trying to settle below the 1.4300 level.
In case this attempt is successful, USD/CAD will move towards the next support level, which is located in the 1.4180 – 1.4200 range. RSI has recently moved into the oversold territory, but there is enough room to gain additional downside momentum in the near term.
USD/JPY Is Flat As Traders Wait For Additional Catalysts
USD/JPY is mostly flat as traders are cautious ahead of BoJ Interest Rate Decision, which will be released on Wednesday.
From the technical point of view, USD/JPY needs to settle above the resistance at 149.00 – 149.50 to have a chance to gain sustainable upside momentum in the near term.
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.
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