EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Lower Despite Rising Treasury Yields

U.S. Dollar

U.S. Dollar Index pulls back as traders react to the economic reports. New Home Sales declined by 0.3% month-over-month in February, compared to analyst consensus of +3%. Dallas Fed Manufacturing Index decreased from -11.3 in February to -14.4 in March, while analysts expected that it would improve to -8.

In case U.S. Dollar Index manages to settle below the 104 level, it will move towards the nearest support, which is located in the 103.50 – 103.75 range.

EUR/USD

EUR/USD rebounds from recent lows as traders take some profits off the table after the recent move. Interestingly, rising Treasury yields did not provide support to the American currency.

If EUR/USD stays above the support at 1.0810 – 1.0830, it will gain additional upside momentum and move towards the 50 MA at 1.0875.

GBP/USD

GBP/USD has also managed to rebound from recent lows in absence of additional catalysts for the British pound. Currently, GBP/USD is trying to settle above the nearest resistance at 1.2650 – 1.2685.

In case this attempt is successful, GBP/USD will head towards the next resistance level at 1.2800 – 1.2820.

USD/CAD

USD/CAD faced resistance at 1.3600 — 1.3620 and pulled back. Rising commodity markets provided additional support to the Canadian dollar.

A move below the 50 MA at 1.3540 will push USD/CAD towards the nearest support level at 1.3480 – 1.3500.

USD/JPY

USD/JPY remains stuck below the key resistance level at 151.50 – 152.00. The Japanese currency is fundamentally weak due to the dovish policy of the BoJ. However, USD/JPY bulls are worried that BoJ will defend the 152.00 level.

The key question is whether BoJ is ready to defend the 152.00 level at all costs. Most likely, we will see interventions from the BoJ in case USD/JPY moves above the 152.00 level. However, it remains to be seen whether such interventions would be big enough to break the current trend.

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