EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As Traders Focus On Powell

Vladimir Zernov
Published: Jul 10, 2024, 16:17 GMT+00:00

Key Points:

  • EUR/USD gained some ground as Treasury yields declined.
  • GBP/USD moved towards the 1.2850 level.
  • USD/CAD tests support at 1.3600 - 1.3620 amid rising commodity markets.

In this article:

U.S. Dollar

DXY 100724 4h Chart

U.S. Dollar Index is losing some ground as traders react to the second day of Jerome Powell’s testimony. Powell did not say anything new, so market’s reaction is not strong. Treasury yields are moving lower, which is bearish for the U.S. dollar.

In case U.S. Dollar Index settles below the 105.00 level, it will head towards the next support, which is located in the 104.40 – 104.60 range.


EUR/USD 100724 4h Chart

EUR/USD gains ground as traders focus on falling Treasury yields. From a big picture point of view, traders stay cautious ahead of U.S. inflation reports, which will be released tomorrow.

A move above the 1.0850 level will open the way to the test of the resistance at 1.0900 – 1.0915.


GBP/USD 100724 4h Chart

GBP/USD tests new highs as traders stay focused on the recent political developments in the UK.

In case GBP/USD manages to settle above the 1.2850 level, it will head towards the nearest resistance level, which is located in the 1.2880 – 1.2900 range.


USD/CAD 100724 4h Chart

USD/CAD tests support at 1.3600 – 1.3620 as commodity markets are moving higher, which is bullish for the Canadian dollar.

In case USD/CAD settles below the support at 1.3600, it will gain additional downside momentum and move towards the next support level at 1.3480 – 1.3500. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.


USD/JPY 100724 4h Chart

USD/JPY is trying to settle above the key resistance at 161.50 – 162.00 as BoJ does not intervene to provide support to the Japanese currency.

The technical picture is bullish, and USD/JPY has a decent chance to settle above the 162.00 level. In this scenario, USD/JPY will gain additional momentum and move towards the 165.00 level. Potential BoJ interventions remain the key risk for the bulls.

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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