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

Vladimir Zernov
Updated: Jun 2, 2024, 09:53 GMT+00:00

Key Points:

  • EUR/USD is trying to settle above the 1.0800 level as traders focus on falling Treasury yields.
  • GBP/USD moved above the resistance at 1.2530 - 1.2550.
  • USD/JPY continued to rebound as traders ignored intervention risks.

In this article:

U.S. Dollar

DXY 130524 4h Chart

U.S. Dollar Index is losing ground as traders focus on the pullback in Treasury yields. There are no important economic reports scheduled to be released in the U.S. today, so U.S. dollar’s dynamics will depend on general market sentiment.

U.S. Dollar Index did not manage to settle above the 50 MA at 105.33 and is moving towards the 105.00 level. In case U.S. Dollar Index settles below 105.00, it will head towards the support at 104.40 – 104.60.


EUR/USD 130524 4h Chart

EUR/USD tests resistance at 1.0785 – 1.0800 as traders focus on general weakness of the American currency.

In case EUR/USD settles above the 1.0800 level, it will move towards the next resistance at 1.0870 – 1.0885. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.


GBP/USD 130524 4h Chart

GBP/USD is also moving higher in today’s trading session. Interestingly, the recent BoE Interest Rate Decision, which showed that BoE was thinking about the start of the rate cut cycle, did not put significant pressure on the British pound.

If GBP/USD stays above the 1.2550 level, it will move towards the next resistance level at 1.2670 – 1.2700.


USD/CAD 130524 4h Chart

USD/CAD is mostly flat despite the rebound in the oil markets. Other commodity-related currencies gained some ground in today’s trading session.

In case USD/CAD climbs above the 50 MA at 1.3696, it will move towards the resistance at 1.3785 – 1.3800.


USD/JPY 130524 4h Chart

USD/JPY  tests new highs despite worries about interventions from the BoJ. Traders bet that BoJ will not intervene until USD/JPY settles above the 158.00 level.

In case USD/JPY moves above 156.50, it will head towards the resistance at 158.00 – 158.50. The Japanese yen is fundamentally weak, but traders should note that the risk of interventions increases as USD/JPY is moving towards the 158.00 – 160.00 range.

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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