EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Housing Starts Rise By 10.7%

U.S. Dollar

U.S. Dollar Index is moving higher as traders prepare for the Fed decision, which will be released tomorrow. Today, traders also focused on the housing market data. Building Permits increased by 1.9% month-over-month in February, compared to analyst consensus of -0.2%. Housing Starts increased by 10.7%, while analysts expected that they would grow by 7%.

In case U.S. Dollar Index settles above the 104.00 level, it will head towards the next resistance, which is located in the 104.40 – 104.60 range.

EUR/USD

EUR/USD pulls back despite the better-than-expected ZEW Economic Sentiment Index report, which indicated that Economic Sentiment improved from 25 in February to 33.5 in March.

The nearest support level for EUR/USD is located in the 1.0810 – 1.0830 range. RSI has recently moved back into the moderate territory, so there is plenty of room to gain additional momentum.

GBP/USD

GBP/USD tested new lows as the pullback continued. Traders stay focused on the general strength of the American currency.

From the technical point of view, GBP/USD may receive significant support in the 1.2650 – 1.2685 range.

USD/CAD

USD/CAD tested new highs as traders reacted to Canada’s inflation reports. Inflation Rate declined from 2.9% in January to 2.8% in February, while Core Inflation Rate decreased from 2.4% to 2.1%.

A move above the resistance at 1.3600 – 1.3620 will provide USD/CAD with an opportunity to gain additional upside momentum.

USD/JPY

USD/JPY gains ground after BoJ Interest Rate Decision. BoJ has finally raised the interest rate from -0.1% to 0%, in line with analyst expectations. However, the market expected that its commentary would be more hawkish, so USD/JPY continued to move higher despite the rate hike.

In case USD/JPY climbs above the 151.00 level, it will get to the test of the resistance at 151.50 – 152.00.

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