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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Mostly Flat In A Volatile Session

By:
Vladimir Zernov
Published: Feb 22, 2024, 16:14 UTC

Key Points:

  • EUR/USD pulled back towards 1.0800 as traders reacted to the disappointing Euro Area Manufacturing PMI report.
  • USD/CAD rebounded towards 1.3500 after an unsuccessful attempt to settle below 1.3450.
  • USD/JPY is trying to settle above the 150.50 level.
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

U.S. Dollar

DXY
DXY 220224 4h Chart

U.S. Dollar Index managed to stay above the 104 level as traders reacted to PMI reports. Manufacturing PMI increased from 50.7 in January to 51.5 in February, while Services PMI declined from 52.5 to 51.3.

A move above the recent highs at 104.13 will push U.S. Dollar Index towards the nearest resistance at 104.35 – 104.55.

EUR/USD

EUR/USD
EUR/USD 220224 4h Chart

EUR/USD pulled back from session highs as traders reacted to the weak Euro Area Manufacturing PMI report, which showed that Manufacturing PMI declined from 46.6 in January to 46.1 in February. Numbers below 50 show contraction.

If EUR/USD settles back below the support at 1.0810 – 1.0830, it will move towards the next support level at 1.0730 – 1.0750.

GBP/USD

GBP/USD
GBP/USD 220224 4h Chart

GBP/USD has also lost momentum and pulled back as traders focused on weak manufacturing data from the UK.

A move below the 1.2600 level will push GBP/USD towards the nearest support at 1.2500 – 1.2520.

USD/CAD

USD/CAD
USD/CAD 220224 4h Chart

USD/CAD settled near the 1.3500 level as traders focused on the rebound in the oil markets. Other commoditiry-related currencies were mostly flat in today’s trading session.

In case USD/CAD stays above the 1.3500 level, it will move towards the nearest resistance at 1.3600 – 1.3620.

USD/JPY

USD/JPY
USD/JPY 220224 4h Chart

USD/JPY is trying to climb above the 150.50 level despite the pullback in Treasury yields. Traders stay focused on the ultra-dovish policy of the BoJ. There are no signs of interventions from the BoJ, which is a bearish sign for the yen.

A move above 150.50 will open the way to the test of the resistance 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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