EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounds From Multi-Month Lows

Vladimir Zernov

The strong GDP Growth Rate report provided support to the American currency.


In this article:

Key Insights

  • EUR/USD pulled back as Germany’s inflation missed analyst expectations. 
  • GBP/USD settled near 1.2700 as traders waited for catalysts. 
  • USD/CAD made an attempt to climb above 1.3600 despite rising oil markets. 

U.S. Dollar

DXY 291123 4h Chart

U.S. Dollar Index gains some ground as traders react to the better-than-expected GDP Growth Rate report, which indicated that GDP Growth Rate was 5.2% in the third quarter.

In case U.S. Dollar Index climbs back above the 103.00 level, it will head towards the next resistance at 103.50 – 103.75.


EUR/USD 291123 4h Chart

EUR/USD pulls back as traders focus on the inflation data from Germany. Inflation Rate declined from 3.8% in October to 3.2% in November, compared to analyst consensus of 3.5%.

The nearest support level for EUR/USD is located in the 1.0925 – 1.0950 range. A move below 1.0925 will push EUR/USD towards the next support at 1.0765 – 1.0790.


GBP/USD 291123 4h Chart

GBP/USD is mostly flat as traders wait for additional catalysts. At this point, the rebound of the U.S. Dollar Index did not put significant pressure on GBP/USD.

In case GBP/USD manages to stay above the 1.2685 level, it will head towards the next resistance, which is located in the 1.2820 – 1.2850 range.


USD/CAD 291123 4h Chart

USD/CAD rebounds despite rising oil markets as traders take some profits off the table after the recent move.

If USD/CAD settles above the 1.3600 level, it will head towards the nearest resistance at 1.3675 – 1.3700.


USD/JPY 291123 4h Chart

USD/JPY settled below the 148.00 level and is trying to settle below 147.50. USD/JPY remains under pressure as traders expect that Fed will start cutting rates in the first half of 2024.

In case USD/JPY manages to settle below 147.50, it will head towards the support at 144.65 – 145.00.

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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