EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Swinging Between Gains And Losses As Traders Weigh Powell’s Words

U.S. Dollar

U.S. Dollar Index is mostly flat as traders stay focused on the recent Fed decision and Powell’s comments. Today, traders had a chance to take a look at the Factory Orders report, which showed that Factory Orders increased by 1.6% month-over-month in March. Initial Jobless Claims remained unchanged at 208,000, compared to analyst consensus of 212,000. Treasury yields are moving lower as the Fed has announced that it would reduce its asset sales.

In case U.S. Dollar Index stays below the 105.75 level, it will head towards the next support level, which is located in the 104.40 – 104.60 range.

EUR/USD

EUR/USD is swinging between gains and losses as traders react to the final reading of the Euro Area Manufacturing PMI report, which indicated that Manufacturing PMI declined from 46.1 in March to 45.7 in April. Numbers below 50 show contraction.

The nearest resistance level for EUR/USD is located in the 1.0700 – 1.0720 range. A move above 1.0720 will push EUR/USD towards the next resistance at 1.0785 – 1.0800.

GBP/USD

GBP/USD pulled back despite falling Treasury yields as traders believe that BoE will be more dovish than Fed in the upcoming months.

If GBP/USD settles below the 50 MA at 1.2480, it will move towards the support at 1.2425 – 1.2450.

USD/CAD

USD/CAD continues to move lower despite the pullback in precious metals markets. Other commodity-related currencies are also moving higher in today’s trading session.

A move below the 50 MA at 1.3698 will push USD/CAD towards the support at 1.3600 – 1.3620.

USD/JPY

USD/JPY retreats as BoJ intervenes to provide support to the Japanese yen. Japan’s central bank decided to defend the 160.00 level and is trying to push USD/JPY back below the 155.00 level.

If USD/JPY stays below the support at 154.50 – 155.00, it will head towards the next support level, which is located in the 151.50 – 152.00 range.

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