EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounded From Session Lows After Inflation Data

Key Insights

• EUR/USD gains ground as Euro Area ZEW Economic Sentiment Index exceeds analyst expectations. 
• USD/CAD tests the 1.3600 level as oil markets dive towards new lows. 
• USD/JPY pulls back amid profit-taking.

U.S. Dollar

U.S. Dollar Index is losing some ground as traders react to inflation reports, which showed that Inflation Rate declined from 3.2% in October to 3.1% in November.

It should be noted that U.S. Dollar Index moved away from session lows, and the nearest support at 103.50 – 103.75 has proved its strength. If U.S. Dollar Index settles above the 104.00 level, it will head towards the next resistance at 104.50 – 104.75.

EUR/USD

EUR/USD is moving higher after the release of the Euro Area ZEW Economic Sentiment Index report, which indicated that Economic Sentiment improved from 13.8 in November to 23.0 in December.

In case EUR/USD manages to settle above the 1.0800 level, it will head towards the next resistance at 1.0925 – 1.0950.

GBP/USD

GBP/USD is swinging between gains and losses as traders react to U.S. inflation data.

RSI remains in the moderate territory, so there is plenty of room to gain additional momentum in the upcoming trading sessions.

USD/CAD

USD/CAD continues its attempts to settle above the 1.3600 level as traders react to the strong sell-off in the oil markets.

In case this attempt is successful, USD/CAD will move towards the next resistance at 1.3675 – 1.3700.

USD/JPY

USD/JPY is losing some ground as traders take some profits off the table after the strong rebound from recent lows.

The nearest support level for USD/JPY is located in the 144.65 – 145.00 range. A successful test of this support level will push USD/JPY towards the next support at 148.00 – 149.00.

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