EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Higher As Traders Wait For Fed Decision

U.S. Dollar

U.S. Dollar Index gains some ground ahead of the Fed Interest Rate Decision, which will be released soon. The rate is expected to stay unchanged, and traders will focus on FOMC Economic Projections and comments from Fed Chair Powell.

U.S. Dollar Index has recently made an attempt to settle above the 104 level but lost momentum and pulled back. If U.S. Dollar Index settles above this level, it will move towards the next resistance at 104.40 – 104.60.

EUR/USD

EUR/USD settled near 1.0850 as traders reacted to the Euro Area Consumer Confidence report. The report indicated that Euro Area Consumer Confidence improved from -15.5 in February to -14.9 in March, compared to analyst consensus of -15.

If EUR/USD manages to stay above the 1.0850 level, it will head towards the nearest resistance, which is located in the 1.0900 – 1.0920 range.

GBP/USD

GBP/USD received support near 1.2685 and is trying to rebound ahead of the Fed decision.

The technical picture remains bearish. However, technical factors will take a back seat when Powell starts to deliver his comments. Thus, traders should be prepared for volatility.

USD/CAD

USD/CAD moved away from session highs despite the strong pullback in the oil markets. It looks that traders decided to take some profits off the table ahead of the Fed decision.

A move below 1.3550 will push USD/CAD towards the nearest support, which is located in the 1.3480 – 1.3500 range.

USD/JPY

USD/JPY is trying to settle above the resistance at 151.50 – 152.00 as traders react to the recent BoJ Interest Rate Decision and the subsequent commentary, which was more dovish than expected.

At this point, the key question is whether BoJ is ready to defend the 152.00 level. If USD/JPY moves above 152.00 without interventions from the BoJ, it may gain significant upside momentum.

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