EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Attempts To Rebound After Sell-Off

Vladimir Zernov
Updated: Jun 2, 2024, 09:52 GMT+00:00

Key Points:

  • EUR/USD is stuck near the resistance at 1.0870 - 1.0885 as traders react to U.S. economic data.
  • USD/CAD settled near the 1.3600 level as traders focused on the rebound in the oil markets.
  • USD/JPY moved back above the 155.00 level amid rising Treasury yields.

In this article:

U.S. Dollar

DXY 160524 4h Chart

U.S. Dollar Index is trying to rebound after yesterday’s sell-off, which was triggered by the release of inflation data. Today, traders had a chance to take a look at the Initial Jobless Claims report, which showed that 222,000 Americans filed for unemployment benefits in a week. Housing Starts increased by 5.7% month-over-month in April, while Building Permits declined by 3%. Industrial Production was unchanged on a month-over-month basis in April. Philadelphia Fed Manufacturing Index declined from 15.5 in April to 4.5 in May. Overall, the reports were not bullish, but U.S. dollar is moving higher as traders take some profits off the table after the recent pullback.

In case U.S. Dollar Index settles back above the 104.60 level, it will head towards the 50 MA at 104.45.


EUR/USD 160524 4h Chart

EUR/USD is trying to settle above the resistance at 1.0870 – 1.0885. RSI has recently moved back into the moderate territory, so there is enough room to gain additional upside momentum.

If EUR/USD climbs above the 1.0885 level, it will head towards the next resistance at 1.0960 – 1.0980.


GBP/USD 160524 4h Chart

GBP/USD continues its attempts to move above the 1.2700 level. Treasury yields are moving higher, but this move does not put significant pressure on GBP/USD.

A successful test of the resistance at 1.2670 – 1.2700 will push GBP/USD towards the next resistance level, which is located in the 1.2780 – 1.2800 range.


USD/CAD 160524 4h Chart

USD/CAD is mostly flat as traders focus on the rebound in the oil markets. Other commodity-related currencies are losing some ground in today’s trading session.

In case USD/CAD settles below the nearest support at 1.3600 – 1.3620, it will head towards the next support level at 1.3480 – 1.3500.


USD/JPY 160524 4h Chart

USD/JPY rebounds after the strong pullback as traders focus on rising Treasury yields.

If USD/JPY manages to settle above the 50 MA at 155.37, it will move towards the recent highs near the 156.50 level.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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