EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Stays Strong As Treasury Yields Test New Highs
- EUR/USD weakens due to surging Treasury yields.
- USD/CAD maintains strength despite oil market rebound.
- USD/JPY experiences a sharp sell-off, BoJ intervention impacts near-term outlook.
In case U.S. Dollar Index settles above the resistance at 106.90 – 107.20, it will head towards the next resistance level, which is located in the 108.00 – 108.35 range.
EUR/USD is losing ground as traders focus on rising Treasury yields. The yield of 30-year Treasuries settled above the 4.90% level, the highest level since 2007.
From the technical point of view, EUR/USD settled below the previous support at 1.0520 and is moving towards the next support level at 1.0360 – 1.0400.
GBP/USD is trading near multi-month lows as traders stay focused on the general strength of the U.S. dollar.
The nearest support level for GBP/USD is located in the 1.2000 – 1.2030 range. A move below this level will push GBP/USD towards the support at 1.1800 – 1.1830.
USD/CAD stays close to recent highs despite the strong rebound in the oil markets.
A successful test of the resistance at 1.3675 – 1.3700 will push USD/CAD towards the next resistance level at 1.3800 – 1.3830.
USD/JPY suffered a strong sell-off, and it looks that BoJ has finally intervened to provide support to the Japanese currency.
USD/JPY found support near 147.30 and climbed back towards the 149.00 level. The near-term dynamics of USD/JPY will depend on the BoJ’s actions.
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