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

Key Insights

• EUR/USD pulled back below 1.1100 as traders focused on rising Treasury yields. 
• USD/CAD remained stuck near the 1.3200 level. 
• USD/JPY moved back above 141.00 after an unsuccessful attempt to settle below 140.50.

U.S. Dollar

U.S. Dollar Index rebounds from multi-month lows as traders react to economic reports. Initial Jobless Claims increased from 206,000 to 218,000, while Pending Home Sales remained unchanged in November.

From the technical point of view, U.S. Dollar Index is moving towards the nearest resistance at 101.75 – 102.00.

EUR/USD

EUR/USD pulled back from recent highs as traders took profits after the recent rally.

The nearest support level for EUR/USD is located in the 1.1015 – 1.1035 range. A move below 1.1015 will push EUR/USD towards the next support at 1.0925 – 1.0950.

GBP/USD

GBP/USD is also losing ground as traders focus on the general strength of the U.S. dollar. The rebound in Treasury yields provides additional support to the American currency.

In case GBP/USD settles below the 50 MA at 1.2705, it will test the support level at 1.2650 – 1.2685.

USD/CAD

USD/CAD remains stuck near the 1.3200 level. Other commodity-related currencies are also flat in today’s trading session.

USD/CAD needs to settle above 1.3200 to have a chance to gain upside momentum. In this scenario, it will move towards the nearest resistance at 1.3275 – 1.3300.

USD/JPY

USD/JPY rebounded from multi-month lows as traders reacted to Japan’s Retail Sales report, which showed that Retail Sales increased by 5.3% year-over-year in November.

If USD/JPY settles back above 141.50, it will head towards the 50 MA at 142.60.

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