U.S. Dollar Gains Ground As Traders React To PMI Reports: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Continues To Rebound

U.S. Dollar Index gains ground as traders react to the better-than-expected Composite PMI report. The report indicated that Composite PMI declined from 53.5 in March to 51.2 in April, compared to analyst forecast of 51.

U.S. Dollar Index settled above the 50 MA at 99.39 and is trying to settle above the 99.70 level. In case this attempt is successful, U.S. Dollar Index will move towards the next resistance at 100.20 – 100.40.

EUR/USD Retreats As Euro Area Services PMI Misses Expectations

EUR/USD pulled back as traders focused on the weak Services PMI report from the EU. The report showed that Services PMI declined from 51 in March to 49.7 in April, compared to analyst forecast of 50.5. Numbers below 50 show contraction.

If EUR/USD stays below the 1.1350 level, it will head towards the nearest support at 1.1275 – 1.1290.

GBP/USD Attempts To Settle Below The 50 MA

GBP/USD attempts to settle below the 50 MA at 1.3260 as traders react to the weak UK Services PMI report, which showed that Services PMI decreased from 52.5 to 48.9.

If GBP/USD manages to settle below the 50 MA, it will head towards the next support level, which is located in the 1.3180 – 1.3200 range.

USD/CAD Tests New Highs As Oil Markets Retreat

USD/CAD is moving higher as traders focus on the strong pullback in gold and oil markets. Other commodity-related currencies are mostly flat in today’s trading session.

A move above the 1.3900 level will push USD/CAD towards the nearest resistance at 1.3930 – 1.3950.

USD/JPY Climbed Above The 142.00 Level

USD/JPY gains ground as traders focus on general strength of the U.S. dollar and bet that U.S. will find a solution in its trade war with China.

If USD/JPY climbs above the 143.00 level, it will get to the test of the next resistance at 143.50 – 144.00.

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