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

U.S. Dollar Index Tests Support At 100.80 – 101.00

U.S. Dollar Index remains under pressure as traders react to Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment increased from 67.9 in August to 69.0 in September, compared to analyst consensus of 68.0. Treasury yields pulled back, putting additional pressure on the American currency.

Currently, U.S. Dollar Index is trying to settle below the support at 100.80 – 101.00. In case this attempt is successful, it will head towards the next support level at 99.55 – 99.75.

EUR/USD Pulled Back From Session Highs

EUR/USD moved away from the session highs as traders focused on the Euro Area Industrial Production report. The report showed that Industrial Production declined by 0.3% month-over-month in July, in line with analyst expectations.

If EUR/USD manages to settle below the 50 MA at 1.1059, it will move towards the next support level at 1.0980 – 1.1000.

GBP/USD Made An Attempt To Settle Above 1.3150

GBP/USD continues its attempts to settle above the resistance at 1.3120 – 1.3140 as traders focus on general weakness of the U.S. dollar.

In case GBP/USD settles above the 1.3140 level, it will gain additional upside momentum and move towards the next resistance at 1.3245 – 1.3265.

USD/CAD Is Flat As Gold Tests New Highs

USD/CAD is mostly flat despite the strong rally in commodity markets. Gold tested historic highs, while silver gained 3.5%. Other commodity-related currencies have found themselves under pressure in todays trading session.

The nearest resistance level for USD/CAD is located in the 1.3600 – 1.3620 range. A move above the 1.3620 level will push USD/CAD towards the resistance at 1.3700 – 1.3715.

USD/JPY Retreats As Treasury Yields Pull Back

USD/JPY tested new lows as traders remained focused on Fed decision, which will be released next week. Falling Treasury yields served as the key bearish catalyst for USD/JPY.

A move below the 140.00 level will push USD/JPY towards the next support level, which is located in the 138.50 – 139.00 range.