EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back From Multi-Month Highs

Vladimir Zernov
Published: Apr 2, 2024, 16:18 UTC

Key Points:

  • EUR/USD rebounded above the 1.0750 level as traders reacted to the Euro Area Manufacturing PMI report.
  • GBP/USD settled back above 1.2550.
  • USD/JPY continued its attempts to settle above the 151.50 - 152.00 level.

In this article:

U.S. Dollar

DXY 020424 4h Chart

U.S. Dollar Index is losing ground as traders react to the JOLTs Job Openings report, which indicated that JOLTs Job Openings remained unchanged at 8.75 million in February. Factory Orders increased by 1.4% month-over-month in February, compared to analyst consensus of 1%.

From a big picture point of view, traders are taking some profits off the table near multi-month highs. Treasury yields are moving higher, so it remains to be seen whether U.S. dollar will gain sustainable downside momentum in the near term.


EUR/USD 020424 4h Chart

EUR/USD rebounds as traders react to the better-than-expected Euro Area Manufacturing PMI report, which showed that Manufacturing PMI declined from 46.5 in February to 46.1 in March. Analysts expected that it would drop to 45.7.

In case EUR/USD climbs above the 1.0780 level, it will head towards the nearest resistance, which is located in the 1.0810 – 1.0830 range.


GBP/USD 020424 4h Chart

GBP/USD is also moving higher, supported by strong Manufacturing PMI data. UK Manufacturing PMI increased from 47.5 in February to 50.3 in March, compared to analyst consensus of 49.9. Numbers above 50 show expansion.

A move above the 1.2600 level will open the way to the test of the nearest resistance at 1.2650 – 1.2685.


USD/CAD 020424 4h Chart

USD/CAD is mostly flat despite the strong performance of commodity markets. Other commodity-related currencies are gaining ground in today’s trading session.

The technical picture remains unchanged as USD/CAD is stuck below the key resistance at 1.3600 – 1.3620.


USD/JPY 020424 4h Chart

USD/JPY continues its attempts to settle above the 151.50 – 152.00 level. Bulls are not ready to sell USD/JPY but are afraid of potential interventions from the BoJ.

A move below the 50 MA at 151.43 may trigger a wave of profit-taking. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

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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