Dollar Resumes Gains Amid Weak Rivals and Fresh Economic Data

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After a brief correction, the US dollar is back on an upward trajectory. The GBP/USD pair has fallen to 1.2600, USD/CAD has bounced from 1.3940 and is heading towards 1.4000, while EUR/USD is approaching 2023 lows.

USD/CAD

At the start of the trading week, dollar buyers managed to push USD/CAD up to 1.4100. However, the pair failed to consolidate above this level and lost over 150 points in subsequent sessions. Nonetheless, the 1.3940–1.3900 range, which had served as resistance for two years, acted as support.

The bounce from 1.3940 allowed buyers to form a reversal pattern, potentially paving the way for another attempt at 1.4100. A decline below 1.3900, however, could lead to a full-fledged downward correction towards the 1.3870–1.3800 range.

Key events influencing USD/CAD pricing today:

  • 16:30 (GMT +3): Canadian core retail sales for October.
  • 17:45 (GMT +3): US services PMI for November.
  • 21:00 (GMT +3): Baker Hughes rig count data.

EUR/USD

A retest of the crucial 1.0620–1.0600 range has highlighted the weakness of euro buyers. The rejection from this level resulted in a drop of over 150 points in just one day.

Technical analysis of EUR/USD suggests the downward trend may continue towards last year’s lows, provided the 1.0520–1.0500 range flips into resistance.

Key events impacting EUR/USD dynamics today:

  • 10:00 (GMT +3): German Q3 GDP release.
  • 11:30 (GMT +3): Speech by ECB President Christine Lagarde.
  • 12:00 (GMT +3): Eurozone services PMI for November.