EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As NAHB Housing Market Index Declines

Vladimir Zernov
Published: Sep 18, 2023, 16:29 GMT+00:00

Traders are cautious ahead of the Fed decision, which will be released on Wednesday.


In this article:

Key Insights

  • U.S. Dollar weakens as NAHB Housing Market Index falls to 45 in September.
  • EUR/USD hovers near 1.0670 – 1.0700 support, awaiting market sentiment cues.
  • USD/CAD slips below 1.3500 as oil prices surge.

U.S. Dollar

DXY 180923 4h Chart

U.S. Dollar Index pulled back after the release of the weaker-than-expected NAHB Housing Market Index report. The report showed that NAHB Housing Market Index declined from 50 in August to 45 in September.

In case U.S. Dollar Index declines below the 105 level, it will move towards the nearest support, which is located in the 104.45 – 104.70 range.


EUR/USD 180923 4h Chart

EUR/USD remains stuck near the support in the 1.0670 – 1.0700 range. There are no important economic reports scheduled to be released in the Euro Area today, so traders will stay focused on general market sentiment.

If EUR/USD manages to settle below the 1.0670 level, it will gain additional downside momentum and move towards the next support in the 1.0520 – 1.0550 range.


GBP/USD 180923 4h Chart

GBP/USD is trying to rebound from multi-month lows as traders take some profits off the table after the recent move.

If GBP/USD climbs back above the 1.2400 level, it will head towards the resistance at 1.2470 – 1.2500.


USD/CAD 180923 4h Chart

USD/CAD moved below the 1.3500 level as oil markets tested new highs. Other commodity-related currencies have also received some support today.

In case USD/CAD stays below 1.3500, it will head towards the support, which is located in the 1.3370 – 1.3400 range.


USD/JPY 180923 4h Chart

USD/JPY remains stuck below the 148.00 level as traders fear that BoJ may intervene in case USD/JPY moves towards the psychologically important 150 level.

However, there are no signs of a pullback. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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