EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Mostly Flat As Traders React To Housing Data

Key Insights

• EUR/USD gains ground despite disappointing Ifo Business Climate report from Germany. 
• USD/CAD is moving higher despite the rally in the oil markets. 
• USD/JPY rebounds as traders focus on rising Treasury yields. 

U.S. Dollar

U.S. Dollar Index is swinging between gains and losses as traders react to NAHB Housing Market Index report, which indicated that NAHB Housing Market Index increased from 34 in November to 37 in December.

If U.S. Dollar Index settles above 102.65, it will head towards the next resistance level at 103.50 – 103.75.

EUR/USD

EUR/USD is moving higher despite the disappointing Ifo Business Climate report, which showed that Business Climate in Germany declined from 87.3 in November to 86.4 in December.

In case EUR/USD manages to settle above the resistance at 1.0925 – 1.0950, it will head towards the next resistance level, which is located in the 1.1015 – 1.1035 range.

GBP/USD

GBP/USD remains under pressure as traders focus on the rebound in Treasury yields.

If GBP/USD settles below the support at 1.2650 – 1.2685, it will get to the test of the 50 MA at 1.2610.

USD/CAD

USD/CAD is moving higher despite the strong rally in the oil markets, which was triggered by attacks on ships by Houthi militant group in the Red Sea.

In case USD/CAD climbs above the 1.3410 level, it will head towards the 50 MA at 1.3520.

USD/JPY

USD/JPY is moving higher as Treasury yields rebound. It should be noted that USD/JPY received strong support in the 141.00 – 141.50 area.

If USD/JPY settles above 143.00, it will head towards the nearest resistance at 144.65 – 145.00.

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