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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Mostly Flat As Traders Wait For Catalysts

By:
Vladimir Zernov
Published: Nov 6, 2023, 16:40 GMT+00:00

The rebound in Treasury yields did not provide support to the American currency.

EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

Key Insights

  • EUR/USD climbed towards the 1.0750 level as traders remained focused on the recent changes in Fed policy outlook. 
  • USD/CAD moved higher despite the rebound in the oil markets. 
  • USD/JPY climbed back towards the psychologically important 150.00 level. 

U.S. Dollar

DXY
DXY 061123 4h Chart

U.S. Dollar Index is mostly flat as traders wait for catalysts. There are no important economic reports scheduled to be released today in the U.S., so traders will stay focused on general market sentiment.

In case U.S. Dollar Index manages to stay above the 105 level, it will head towards the nearest resistance, which is located in the 105.65 – 105.90 range.

EUR/USD

EUR/USD
EUR/USD 061123 4h Chart

EUR/USD gains some ground as traders react to the final reading of the Euro Area Services PMI report, which indicated that Services PMI declined from 48.7 in September to 47.8 in October.

RSI has recently moved back into the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

GBP/USD

GBP/USD
GBP/USD 061123 4h Chart

GBP/USD tests resistance at 1.2370 – 1.2400 as traders bet that Fed will start cutting rates in 2024.

In case this test is successful, GBP/USD will head towards the next resistance level at 1.2650 – 1.2685.

USD/CAD

USD/CAD
USD/CAD 061123 4h Chart

USD/CAD is moving higher despite the rebound in the oil markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

A move above the 1.3700 level will open the way to the test of the next resistance, which is located in the 1.3800 – 1.3830 range.

USD/JPY

USD/JPY
USD/JPY 061123 4h Chart

USD/JPY climbed back towards the 150.00 level as traders focused on the rebound in Treasury yields.

If USD/JPY settles above 150.00, it will head towards the next resistance at 151.45 – 152.00. Bulls will stay cautious as BoJ may intervene to provide support to the yen in case USD/JPY moves towards the 152.00 level.

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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