EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back On Profit-Taking

Key Insights

• The U.S. Dollar Index is retracting, digesting remarks from Fed Chair Powell’s recent speech at the Jackson Hole Symposium.
• The EUR/USD pair is on the rise, fueled by traders taking profits at multi-week lows and an absence of impactful EU economic reports.
• USD/JPY remains stuck near the recent highs despite rising Treasury yields. 

U.S. Dollar

U.S. Dollar Index pulls back as traders continue to digest Powell’s comments at the Jackson Hole Symposium. Treasury yields are moving lower, which is bearish for the American currency.

The nearest support level for U.S. Dollar Index is located in the 103.40 – 103.65 range. A move below 103.40 will open the way to the test of the support at 102.00 – 102.15.

EUR/USD

EUR/USD gains ground as traders take some profits off the table near multi-week lows. There are no important economic reports scheduled to be released in the EU today, so traders will stay focused on general market sentiment.

In case EUR/USD climbs back above the nearest resistance at 1.0835 – 1.0850, it will head towards the next resistance level, which is located in the 1.0950 – 1.0975 range.

GBP/USD

GBP/USD is also moving higher while traders wait for additional catalysts.

From the technical point of view, GBP/USD remains stuck near the support at 1.2590 – 1.2620. If GBP/USD climbs above 1.2620, it will head towards the resistance at 1.2725 – 1.2750.

USD/CAD

USD/CAD is mostly flat in today’s trading session. Oil markets are swinging between gains and losses, and USD/CAD traders are waiting for additional catalysts.

In case USD/CAD manages to settle back above the 1.3600 level, it will head towards the next resistance, which is located in the 1.3650 – 1.3670 range.

USD/JPY

USD/JPY remains stuck near the recent highs. Traders have not reacted to the minor pullback in Treasury yields.

Taking a look at the daily chart, 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.