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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Stabilizes After The Recent Rally

By:
Vladimir Zernov
Published: Apr 17, 2024, 16:26 GMT+00:00

Key Points:

  • EUR/USD settled near 1.0650 as traders reacted to the final reading of the Euro Area Inflation Rate report.
  • GBP/USD is mostly flat after UK inflation reports exceeded analyst expectations.
  • USD/JPY is stuck near the key resistance at 154.50 - 155.00.
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

U.S. Dollar

DXY
DXY 170424 4h Chart

U.S. Dollar Index is stabilizing after the recent move. Treasury yields have started to move lower as bond traders used the recent sell-off as an opportunity to buy Treasuries at attractive levels.

If U.S. Dollar Index climbs above the 106.50 level, it will head towards the nearest resistance at 107.10 – 107.35.

EUR/USD

EUR/USD
EUR/USD 170424 4h Chart

EUR/USD gained some ground as traders reacted to the final reading of the Euro Area Inflation Rate report. The report indicated that Inflation Rate declined from 2.6% in February to 2.4% in March, in line with analyst expectations.

If EUR/USD manages to stay above the support at 1.0600 – 1.0620, it will move towards the nearest resistance at 1.0700 – 1.0720.

GBP/USD

GBP/USD
GBP/USD 170424 4h Chart

GBP/USD is mostly flat after the release of inflation data from the UK. Inflation Rate decreased from 3.4% in February to 3.2% in March, compared to analyst consensus of 3.1%. Core Inflation Rate declined from 4.5% to 4.2%.

A successful test of the support at 1.2425 – 1.2450 will push GBP/USD towards the next support level at 1.2310 – 1.2335.

USD/CAD

USD/CAD
USD/CAD 170424 4h Chart

USD/CAD pulls back after the recent rally. Other commodity-related currencies have also managed to gain some ground in today’s trading session.

From the technical point of view, USD/CAD needs to stay above the 1.3800 level to have a chance to gain additional upside momentum in the near term.

USD/JPY

USD/JPY
USD/JPY 170424 4h Chart

USD/JPY is stuck near the resistance at 154.50 – 155.00 as traders wait for potential interventions from the BoJ.

The Japanese currency remains fundamentally weak due to the ultra-dovish policy of the BoJ and the recent changes in Fed policy outlook. If USD/JPY climbs above the psychologically important 155.00 level, it will gain additional upside momentum. It should be noted that BoJ may try to defend the 155.00 level, so bulls will likely stay cautious in the near term.

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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