EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Higher As Traders Prepare For CPI Data

U.S. Dollar

U.S. Dollar Index is moving higher as Treasury yields rebound from recent lows. There are no important economic reports scheduled to be released today in the U.S., so traders will stay focused on general market sentiment and prepare for tomorrow’s CPI data.

Currently, U.S. Dollar Index is trying to settle above the resistance at 102.80 – 103.00. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located in the 103.50 – 103.75 range.

EUR/USD

EUR/USD tests support at 1.0900 – 1.0920 as traders continue to take profits after the rebound from February lows.

If EUR/USD manages to settle below the 1.0900 level, it will gain additional downside momentum and move towards the next support at 1.0810 – 1.0830.

GBP/USD

GBP/USD pulls back amid profit-taking. The recent rally was strong, so it’s not surprising to see that some traders want to take their profits off the table.

If GBP/USD moves below the 1.2800 level, it will head towards the next significant support level, which is located in the 1.2650 – 1.2685 range.

USD/CAD

USD/CAD is mostly flat as traders react to the rebound in the oil markets. Other commodity-related currencies have found themselves under some pressure in today’s trading session.

A move above the resistance at 1.3480 – 1.3500 will open the way to the test of the next resistance level at 1.3600 – 1.3620.

USD/JPY

USD/JPY remains stuck below the 147.00 level as traders react to the final reading of Japan’s fourth-quarter GDP report. GDP Growth Rate was 0.1% in the fourth quarter, compared to analyst consensus of 0.3%. Interestingly, weak GDP Growth Rate data did not put material pressure on the Japanese yen.

RSI is in the oversold territory, so the risks of a rebound are increasing. USD/JPY needs to settle above the resistance at 147.00 – 147.50 to have a chance to gain upside momentum in the near term.

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