EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats As ISM Services PMI Misses Expectations

U.S. Dollar

U.S. Dollar Index is losing ground as traders react to the weaker-than-expected ISM Services PMI report, which indicated that ISM Services PMI declined from 52.6 in February to 51.4 in March.

Currently, U.S. Dollar Index is trying to settle below the support at 104.40 – 104.60. If U.S. Dollar Index settles below this level, it will move towards the next support, which is located in the 103.50 – 103.80 range.

EUR/USD

EUR/USD settled back above the 1.0800 level as traders reacted to the flash readings of inflation reports from the EU. Euro Area Inflation Rate declined from 2.6% in February to 2.4% in March, compared to analyst consensus of 2.6%. Euro Area Core Inflation Rate decreased from 3.1% to 2.9%, while analysts expected that it would drop to 2.9%. Interestingly, lower-than-expected inflation data did not put pressure on the European currency. It looks that traders have mostly focused on the ISM Services PMI report from the U.S.

In case EUR/USD settles above the resistance at 1.0810 – 1.0830, it will move towards the next resistance level at 1.0900 – 1.0920.

GBP/USD

GBP/USD is also moving higher as traders focus on general weakness of the U.S. dollar.

The nearest resistance level for GBP/USD is located in the 1.2650 – 1.2685 range. A successful test of this level will push GBP/USD towards the next resistance at 1.2800 – 1.2825.

USD/CAD

USD/CAD pulled back as commodity markets moved higher. Silver tested yearly highs, providing additional support to commodity-related currencies.

From the technical point of view, USD/CAD is moving towards the nearest support level at 1.3480 – 1.3500.

USD/JPY

USD/JPY is trying to get to the test of the 152.00 level. Treasury yields have recently tested new highs, providing additional support to USD/JPY.

RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case USD/JPY manages to settle above the 152.00 level.

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