EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Retail Sales Exceed Expectations

U.S. Dollar

U.S. Dollar Index gains some ground as traders react to the better-than-expected Retail Sales report for March. The report indicated that Retail Sales increased by 0.7% on a month-over-month basis, compared to analyst consensus of +0.3%. NY Empire State Manufacturing Index improved from -20.9 in March to -14.3 in April, while analysts expected that it would grow to -9. NAHB Housing Market Index remained unchanged at 51 in April, in line with analyst expectations.

Currently, U.S. Dollar Index is trying to settle above the resistance at 105.75 – 106.00. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance, which is located in the 107.10 – 107.35 range.

EUR/USD

EUR/USD is mostly flat as traders react to the Euro Area Industrial Production report, which showed that Industrial Production increased by 0.8% month-over-month in February.

A move below the support at 1.0600 – 1.0625 will open the way to the test of the next support level, which is located in the 1.0500 – 1.0525 range.

GBP/USD

GBP/USD made an attempt to settle above the 1.2500 level but lost momentum and pulled back.

A successful test of the support at 1.2425 – 1.2450 will push GBP/USD towards the next support level at 1.2310 – 1.2335.

USD/CAD

USD/CAD is losing ground as traders take profits off the table after the recent rally.

From the technical point of view, USD/CAD needs to settle above the resistance at 1.3780 – 1.3800 to gain additional upside momentum.

USD/JPY

USD/JPY tests new highs as traders focus on rising Treasury yields. There are no signs of interventions from the BoJ, which is bearish for the yen.

USD/JPY settled above 154.00 and is heading towards the 155.00 level. RSI has recently moved into the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge.

For a look at all of today’s economic events, check out our economic calendar.