EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Some Ground In Choppy Trading

Vladimir Zernov
Published: May 8, 2024, 16:21 GMT+00:00

Key Points:

  • EUR/USD settled near 1.0750 as traders reacted to the better-than-expected Industrial Production report from Germany.
  • USD/CAD pulled back as oil markets moved away from session lows after EIA report.
  • USD/JPY climbed above the important 155.00 level.

In this article:

U.S. Dollar

DXY 080524 4h Chart

U.S. Dollar Index gains some ground as traders focus on the rebound in Treasury yields.

Currently, U.S. Dollar Index is trying to settle above the 50 MA at 105.55. In case this attempt is successful, U.S. Dollar Index will move towards the resistance at 105.75 – 106.00.


EUR/USD 080524 4h Chart

EUR/USD is mostly flat as traders focus on Germany’s Industrial Production report, which showed that Industrial Production declined by 0.4% month-over-month in March. Analysts expected that Industrial Production would decrease by 0.6%, so the report exceeded analyst forecasts.

A move above the 1.0750 level will open the way to the test of the resistance, which is located in the 1.0785 – 1.0800 range.


GBP/USD 080524 4h Chart

GBP/USD rebounded from session lows and moved towards the 1.2500 level. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum.

If GBP/USD settles back above 1.2500, it will head towards the next resistance level at 1.2530 – 1.2550.


USD/CAD 080524 4h Chart

USD/CAD pulled back from session highs as traders focused on the rebound in the oil markets. Other commodity-related currencies were under pressure in today’s trading session.

In case USD/CAD manages to settle below the 50 MA at 1.3700, it will move towards the nearest support level at 1.3600 – 1.3620.


USD/JPY 080524 4h Chart

USD/JPY continues to move higher despite the recent interventions from the BoJ. It remains to be seen whether Japan’s central bank managed to scare bulls. BoJ’s policy is extremely dovish while the Fed is not expected to start cutting rates in the upcoming months, which is bearish for the yen.

USD/JPY has recently moved above the resistance at 154.50 – 155.00 and is trying to settle above the 50 MA at 155.40. In case this attempt is successful, USD/JPY will head towards the resistance at 158.00 – 158.50.

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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