EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Lower As Consumer Confidence Falls
- Weaker Michigan Consumer Sentiment report triggers U.S. Dollar Index pullback.
- A move above 1.0700 could send EUR/USD towards recent highs at 1.0765.
- GBP/USD struggles below 1.2400 amid concerns over the UK economy.
In case U.S. Dollar Index manages to settle below the 105.00 level, it will head towards the support at 104.45 – 104.70.
EUR/USD is trying to rebound from multi-week lows. Traders remain focused on the recent comments from ECB, which signaled that interest rates may have peaked but did not rule out another rate hike.
Taking a look at the daily chart, a move above the 1.0700 level will push EUR/USD towards the recent highs at 1.0765.
GBP/USD continues its attempts to settle below the 1.2400 level as traders stay focused on the problems of the UK economy.
If GBP/USD settles below the 1.2400 level, it will head towards the nearest support at 1.2300 – 1.2330.
USD/CAD moved back towards the recent lows as oil markets rebounded from session lows. Oil traders are focused on tight supplies, which is bullish for oil and commodity-related currencies.
In case USD/CAD declines below the support at 1.3500, it will head towards the next support level, which is located in the 1.3370 – 1.3400 range.
USD/JPY is slowly moving towards the key resistance in the 148.00 – 149.00 range. Traders are cautious as BoJ may intervene to provide additional support to the yen. At the same time, there are no bullish catalysts for the Japanese currency, so USD/JPY bulls are pushing the pair towards new highs.
As I noted before, the key question is whether BoJ will decide to intervene in case USD/JPY moves above the 148 level. If BoJ does nothing, USD/JPY may quickly climb above the 150 level.
For a look at all of today’s economic events, check out our economic calendar.