Advertisement
Advertisement
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats On Profit-Taking
By:
The American currency is under pressure as traders take some profits off the table near multi-month highs.
Key Insights
- EUR/USD rises above 1.0550 as Germany’s inflation dips from 6.1% to 4.5%, slightly below analyst consensus of 4.6%.
- GBP/USD gains momentum after being oversold, finding support as traders bet on a rebound.
- USD/JPY climbs above 149.00 amid BoJ’s ultra-dovish policy stance, though caution remains regarding potential intervention to support the yen.
U.S. Dollar
U.S. Dollar Index pulled back as traders reacted to the GDP Growth Rate report, which showed that GDP Growth Rate increased from 2% to 2.1%. It looks that the pullback is mostly driven by profit-taking.
The nearest support level for U.S. Dollar Index is located in the 105.65 – 105.90 range. In case U.S. Dollar Index declines below the 105.65 level, it will head towards the next support at 104.45 – 104.70.
EUR/USD
EUR/USD moved above the 1.0550 level as traders reacted to Germany’s inflation reports, which showed that Inflation Rate declined from 6.1% in August to 4.5% in September, compared to analyst consensus of 4.6%.
In case EUR/USD settles above 1.0550, it will head towards the nearest significant resistance level, which is located in the 1.0670 – 1.0700 range.
GBP/USD
GBP/USD is also moving higher as traders take some profits off the table after the strong move.
GBP/USD has been oversold, and it’s not surprising to see that the pound has finally managed to get some support from traders who are willing to bet on a rebound from current levels.
USD/CAD
USD/CAD is moving lower as traders focus on the general weakness of the U.S. dollar in today’s trading session.
A move below the 50 MA at 1.3475 will push USD/CAD towards the nearest support level in the 1.3370 – 1.3400 range.
USD/JPY
USD/JPY climbed above the 149.00 level as traders focused on the ultra-dovish policy of the BoJ.
While the Japenese yen is fundamentally weak, USD/JPY bulls are cautious as the BoJ may intervene to provide support to the Japanese currency.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Vladimir Zernovauthor
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
Advertisement