EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecast – U.S. Dollar Retreats After Testing New Highs

Key Insights

• The U.S. Dollar Index struggled to breach the 103.40 – 103.65 resistance zone.
• GBP/USD found footing near 1.2620 and aims for the 1.2700 level amidst a quiet economic calendar.
• A potential break above 144.65 – 145.00 might pave the way to the 148.00 – 149.00 range for USD/JPY.

U.S. Dollar

U.S. Dollar Index pulled back after an unsuccessful attempt to settle above the resistance in the 103.40 – 103.65 range.

This resistance is an important obstacle on the way up for the U.S. Dollar Index. The 103.40  – 103.65 level has been tested several times in late June – early July, and a strong pullback started after these unsuccessful tests.

EUR/USD

EUR/USD moved away from session lows but remains under some pressure. Today, EUR/USD traders focused on Germany’s Wholesale Prices report, which showed that Wholesale Prices declined by 2.8% year-over-year in July.

In case EUR/USD stays below the 1.0950 level, it will move towards the nearest support, which is located in the 1.0835 – 1.0850 range.

GBP/USD

GBP/USD  received support near the 1.2620 level and rebounded towards 1.2700 level. There are no important economic reports scheduled to be released today, so traders will stay focused on general market sentiment.

In case GBP/USD manages to settle back above the resistance at 1.2725 – 1.2750, it will move towards the next resistance level, which is located in the 1.2970 – 1.3000 range.

USD/CAD

USD/CAD is mostly flat as oil markets continue to move away from recent highs. Other commodity-related currencies are also flat in today’s trading session.

If USD/CAD manages to stay above the 1.3450 level, it will head towards the next resistance, which is located in the 1.3500 – 1.3520 range.

USD/JPY

USD/JPY is trying to settle above the strong resisance in the 144.65 – 145.00 range as traders focus on rising Treasury yields.

Taking a look at the daily chart, a successful test of the resistance at 144.65 – 145.00 will open the way to the test of the next resistance in the 148.00 – 149.00 range.

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