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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Flat Ahead Of The Weekend

By:
Vladimir Zernov
Updated: Jun 2, 2024, 09:52 GMT+00:00

Key Points:

  • EUR/USD tests resistance at 1.0870 - 1.0885.
  • GBP/USD continues its attempts to settle above the 1.2700 level.
  • USD/CAD is flat despite the strong rally in precious metals markets.
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

U.S. Dollar

DXY
DXY 170524 4h Chart

U.S. Dollar Index is swinging between gains and losses ahead of the weekend. Today, traders had a chance to take a look at CB Leading Index report. The report indicated that CB Leading Index declined by 0.6% month-over-month in April, compared to analyst consensus of -0.3%.

If U.S. Dollar Index pulls back below the 104.40 level, it will head towards the support at 103.75 – 103.90.

EUR/USD

EUR/USD
EUR/USD 170524 4h Chart

EUR/USD continues its attempts to settle above the resistance at 1.0870 – 1.0885 as traders react to the final reading of the Euro Area inflation report, which showed that Inflation Rate remained unchanged at 2.4%.

In case EUR/USD manages to settle above the 1.0885 level, it will head towards the next resistance level at 1.0960 – 1.0980.

GBP/USD

GBP/USD
GBP/USD 170524 4h Chart

GBP/USD gains ground despite rising Treasury yields. RSI is close to the overbought territory, but there is enough room to gain additional momentum.

A successful test of the resistance at 1.2700 will push GBP/USD towards the next resistance at 1.2780 – 1.2800.

USD/CAD

USD/CAD
USD/CAD 170524 4h Chart

USD/CAD is mostly flat despite the strong rally in precious metals markets. Other commodity-related currencies are gaining some ground in today’s trading session, but there are no strong moves, which is surprising given the dynamics of precious metals markets.

From the technical point of view, USD/CAD found strong support in the 1.3600 – 1.3620 range.

USD/JPY

USD/JPY
USD/JPY 170524 4h Chart

USD/JPY did not manage to settle above the 156.00 level and pulled back. It looks that USD/JPY will need additional catalysts to gain upside momentum in the near term.

The nearest support level for USD/JPY is located in the 154.50 – 155.00 range. In case USD/JPY declines below 154.50, it will head towards the next support at 151.50 – 152.00.

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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