EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back Amid Lack Of Catalysts

U.S. Dollar

U.S. Dollar Index is losing ground amid lack of catalysts. There are no economic reports scheduled to be released today due to Memorial Day in the U.S.

In case U.S. Dollar Index settles below the support at 104.40 – 104.60, it will head towards the next support level, which is located in the 103.75 – 103.90 range.

EUR/USD

EUR/USD is moving higher as traders react to Ifo Business Climate report from Germany. The report showed that Ifo Business Climate remained unchanged at 89.3 in May, compared to analyst consensus of 90.4.

In case EUR/USD settles above the nearest resistance at 1.0870 – 1.0885, it will move towards the next resistance at 1.0960 – 1.0980

GBP/USD

GBP/USD tests new highs as traders stay bullish in absence of significant catalysts. Traders bet that BoE will be more hawkish than Fed in the second half of the year.

A successful test of the resistance at 1.2780 – 1.2800 will push GBP/USD towards the next resistance level at 1.2875 – 1.2900.

USD/CAD

USD/CAD is losing ground as traders focus on the rebound in precious metals markets. Rising oil markets provide additional support to USD/CAD.

The nearest support level for USD/CAD is located in the 1.3600 – 1.3620 range. If USD/CAD declines below 1.3600, it will head towards the support at 1.3480 – 1.3500.

USD/JPY

USD/JPY is mostly flat as traders wait for additional catalysts. The risk of BoJ interventions provides some support to the Japanese yen.

In case USD/JPY fails to climb above the 157.00 level, it will head towards the 50 MA at 156.14. A move below the 50 MA will push USD/JPY towards the support at 154.50 – 155.00.

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