U.S. Dollar Tests Yearly Highs As Rally Continues: Analysis For EUR/USD, GBP/USD, USD/CAD, USD/JPY

U.S. Dollar Index gains ground as traders focus on Producer Prices data. PPI increased by +0.3% month-over-month in October, compared to analyst forecast of +0.4%. Core PPI grew by +0.3%, in line with analyst estimates.

Currently, U.S. Dollar Index is trying to settle above the resistance at 103.15 – 103.30. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located in the 104.60 – 104.75 range. I’d note that RSI is in the overbought territory, so the risks of a pullback are increasing.