EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Some Ground At The Start Of The Week

Key Insights

• EUR/USD pulled back as Treasury yields continued to move higher. 
• USD/CAD moved away from session highs as oil markets rebounded after the recent pullback. 
• USD/JPY remains stuck near the 149.50 level as bulls fear that BoJ may intervene in case USD/JPY gains more ground. 

U.S. Dollar

U.S. Dollar Index gains ground as Treasury yields continue to move higher. Traders bet on a more hawkish Fed, which is bullish for the American currency.

In case U.S. Dollar Index settles above the resistance at 104.35 – 104.55, it will head towards the next resistance level, which is located in the 105.75 – 106.00 range.

EUR/USD

EUR/USD is losing ground as traders focus on general strength of the American currency.

RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum. If EUR/USD settles below the support at 1.0730 – 1.0750, it will head towards the next support level at 1.0640 – 1.0660.

GBP/USD

GBP/USD is mostly flat as traders wait for additional catalysts. From the technical point of view, GBP/USD did not manage to settle above the nearest resistance at 1.2650 – 1.2685 and is trying to gain downside momentum.

In case this attempt is successful, GBP/USD will settle below the 1.2600 level and move towards the support at 1.2500 – 1.2520.

USD/CAD

USD/CAD pulled back after an unsuccessful attempt to climb above 1.3480 as oil markets rebounded from session lows.

A move below 1.3450 will push USD/CAD towards the nearest support level, which is located in the 1.3380 – 1.3410 range.

USD/JPY

USD/JPY moved back towards the 149.50 level amid a lack of positive catalysts for the Japanese yen.

USD/JPY bulls are afraid of potential interventions from the BoJ, but USD/JPY will likely test the 150.00 level as Treasury yields continue to move higher.

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