EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounds After Yesterday’s Pullback

Vladimir Zernov
Published: Sep 12, 2023, 17:06 GMT+00:00

USD/JPY gained upside momentum as bulls shrugged off intervention risks.


In this article:

Key Insights

  • U.S. Dollar Index tries to climb above the 104.70 level. 
  • EUR/USD retreats as traders react to the weaker-than-expected Euro Area ZEW Economic Sentiment Index report. 
  • USD/CAD moves lower as oil markets test new highs.

U.S. Dollar

DXY 120923 4h Chart

U.S. Dollar Index continues its attempts to settle above the 104.45 – 104.75 level as traders prepare for the Fed decision, which will be released next week.

If U.S. Dollar Index manages to settle above 104.75, it will head towards the next resistance, which is located in the 105.65 – 105.90 range.


EUR/USD 120923 4h Chart

EUR/USD pulls back as traders react to the Euro Area ZEW Economic Sentiment Index report, which showed that Economic Sentiment declined from -5.5 in August to -8.9 in September, compared to analyst consensus of -6.2.

From the technical point of view, EUR/USD receives strong support near the 1.0670 – 1.0700 level. Most likely, it will need additional catalysts to settle below 1.0670.


GBP/USD 120923 4h Chart

GBP/USD is trading near recent lows as traders react to the job market data from the UK. Unemployment Rate increased from 4.2% in June to 4.3% in July, in line with the analyst consensus.

GBP/USD has already made several attempts to settle below the 1.2470 level, but these attempts yielded no results. If GBP/USD moves back above 1.2500, it will head towards the resistance at 1.2590 – 1.2620.


USD/CAD 120923 4h Chart

USD/CAD pulls back as oil markets test new highs. Interestingly, demand for other commodity-related currencies has not increased.

The nearest support level for USD/CAD is located in the 1.3500 – 1.3520 range. The 200 MA is located in the nearby, so USD/CAD may get solid support near this level.


USD/JPY 120923 4h Chart

USD/JPY gains ground as traders use the recent pullback as an opportunity to increase their long positions. At this point, the market is not afraid of the interventions from the BoJ.

The nearest resistance for USD/JPY is located in the 148.00 – 149.00 range. If USD/JPY moves above the 149.00 level, traders will be focused on the potential interventions.

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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