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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Initial Jobless Claims Fall
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U.S. dollar keeps moving higher as traders bet on a more hawkish Fed.
Key Insights
- EUR/USD received strong support near 1.0750 despite rising Treasury yields.
- USD/CAD was mostly unchanged despite the strong rally in the oil markets.
- USD/JPY moved above the 149.00 level.
U.S. Dollar
U.S. Dollar Index gains ground as traders react to the Initial Jobless Claims report, which showed that 218,000 Americans filed for unemployment benefits in a week.
In case U.S. Dollar Index climbs above the 104.55 level, it will head towards the next resistance, which is located in the 105.75 – 106.00 range.
EUR/USD
EUR/USD is mostly flat despite rising Treasury yields. From the technical point of view, EUR/USD received strong support in the 1.0730 – 1.0750 range.
If EUR/USD settles below 1.0730, it will head towards the next support level, which is located in the 1.0640 – 1.0660 range.
GBP/USD
GBP/USD pulled back as traders reacted to U.S. job market data. However, it should be noted that GBP/USD failed to gain significant downside momentum amid a lack of additional catalysts.
In case GBP/USD manages to settle below the 1.2600 level, it will head towards the nearest support at 1.2500 – 1.2520.
USD/CAD
USD/CAD is mostly flat despite the strong rally in the oil markets, which was triggered by rising tensions in the Middle East.
If USD/CAD climbs back above the 1.3500 level, it will move towards the resistance at 1.3600 – 1.3620.
USD/JPY
USD/JPY tests new highs as Treasury yields rise. FedWatch Tool indicates that traders believe that Fed will leave the federal funds rate unchanged at the next meeting, which is bullish for the American currency.
A successful test of the resistance at 149.50 – 150.00 will push USD/JPY towards the next resistance level at 151.50 – 152.00. The current trend is bullish, but traders should be prepared for potential interventions from the BoJ. Previously, Japan’s central bank defended the 152.00 level.
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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