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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Some Ground As Treasury Yields Move Higher

By:
Vladimir Zernov
Updated: Jun 2, 2024, 09:51 GMT+00:00

Key Points:

  • EUR/USD failed to settle above the resistance at 1.0870 - 1.0885.
  • GBP/USD continues its attempts to settle above the 1.2700 level.
  • USD/JPY climbed above 156.00 as traders focused on rising Treasury yields.
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

U.S. Dollar

DXY
DXY 200524 4h Chart

U.S. Dollar Index continues its attempts to settle above the resistance at 104.40 – 104.60. There are no important economic reports scheduled to be released in the U.S. today, so traders will stay focused on general market sentiment.

In case U.S. Dollar Index settles above the 104.60 level, it will head towards the 50 MA at 104.97. A move above the 50 MA will open the way to the test of the resistance at 105.75 – 106.00.

EUR/USD

EUR/USD
EUR/USD 200524 4h Chart

EUR/USD pulled back after an unsuccessful attempt to settle above the resistance at 1.0870 – 1.0885. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

If EUR/USD climbs above the 1.0885 level, it will gain additional upside momentum and head towards the resistance at 1.0960 – 1.0980.

GBP/USD

GBP/USD
GBP/USD 200524 4h Chart

GBP/USD gains some ground as traders wait for additional catalysts. It should be noted that Treasury yields are moving higher, which is bearish for GBP/USD. However, GBP/USD continues its attempts to settle above the 1.2700 level.

If GBP/USD settles above 1.2700, it will head towards the next resistance level, which is located in the 1.2780 – 1.2800 range.

USD/CAD

USD/CAD
USD/CAD 200524 4h Chart

USD/CAD remains stuck near the support at 1.3600 – 1.3620 despite volatility in precious metals markets. Gold and silver tested new highs today, but this move did not provide material support to commodity-related currencies.

If USD/CAD manages to settle back above the 1.3620 level, it will move towards the 50 MA at 1.3655.

USD/JPY

USD/JPY
USD/JPY 200524 4h Chart

USD/JPY moved above the 156.00 level as traders focused on rising Treasury yields.

USD/JPY has recently managed to settle back above the 50 MA, which is a bullish sign. In case USD/JPY stays above the 156.00 level, it will head towards the nearest significant resistance level, which is located in the 158.00 – 158.50 range. Potential interventions from the BoJ remain the key risk for the bulls.

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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