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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – Government Shutdown Fears Push Dollar To New Highs
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Rising demand for safe-haven assets provided support to the American currency.
Key Insights
- EUR/USD hits new lows on expectations of a more hawkish Fed.
- GBP/USD remains under serious pressure amid a lack of positive catalysts.
- USD/JPY is trying to settle above the 149.00 level.
U.S. Dollar
U.S. Dollar Index tested new highs as demand for the American currency increased amid worries about the potential government shutdown.
Taking a look at the daily chart, U.S. Dollar Index settled above the 105.65 – 105.90 level and is moving towards the next resistance, which is located in the 106.90 – 107.20 range.
EUR/USD
EUR/USD tests new lows as traders bet that Fed will be more hawkish than ECB.
It should be noted that RSI has recently entered into the oversold territory on the daily chart, so the risks of a rebound are increasing.
GBP/USD
GBP/USD remains under serious pressure. The recent surprising decision from the BoE, which decided to leave the interest rate unchanged, served as a significant negative catalyst for GBP/USD.
Currently, GBP/USD is trying to settle below the support at 1.2180 – 1.2200. In case this attempt is successful, GBP/USD will head towards the next support level, which is located in the 1.2000 – 1.2030 range. Traders should note that GBP/USD is oversold, so a technical rebound may be around the corner.
USD/CAD
USD/CAD is trying to climb above the resistance at 1.3500 – 1.3520 as commodity-related currencies are under pressure against the U.S. dollar.
A move above the 1.3520 level will open the way to the test of the next resistance at 1.3675 – 1.3700.
USD/JPY
USD/JPY is trying to climb above the 149.00 level as traders remain focused on the general strength of the U.S. dollar. The BoE has not intervened, and it looks that the central bank will not make any moves until USD/JPY reaches the psychologically important 150.00 level.
A move above 149.00 will push USD/JPY towards the 152.00 level, but trading dynamics will depend on whether BoE intervenes in the upcoming trading sessions.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
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