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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests Multi-Month Highs Ahead Of The Weekend

By:
Vladimir Zernov
Published: Apr 12, 2024, 16:11 GMT+00:00

Key Points:

  • EUR/USD pulled back towards 1.0650 as traders bet that Fed would be more hawkish than ECB
  • GBP/USD is trying to settle below the support at 1.2425 - 1.2450.
  • USD/JPY is trading above the 153.00 level as BoJ does not intervene to support the yen.
EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

U.S. Dollar

DXY
DXY 120424 4h Chart

U.S. Dollar Index tested new highs as traders reacted to the Michigan Consumer Sentiment report, which indicated that Consumer Sentiment declined from 79.4 in March to 77.9 in April. The report has also shown that consumer inflation expectations have increased, which was bullish for the U.S. dollar.

In case U.S. Dollar Index manages to settle above the resistance at 105.75 – 106.00, it will move towards the next resistance level at 107.10 – 107.35.

EUR/USD

EUR/USD
EUR/USD 120424 4h Chart

EUR/USD remains under strong pressure as traders bet that ECB would be more dovish than Fed this year. The pullback in Treasury yields did not put any pressure on the American currency.

The nearest support level for EUR/USD is located in the 1.0600 – 1.0620 range. In case EUR/USD settles below the support at 1.0600, it will head towards the next support level, which is located in the 1.0500 – 1.0520 range.

GBP/USD

GBP/USD
GBP/USD 120424 4h Chart

GBP/USD tests new lows as the pullback continues. Traders stay focused on general strength of the U.S. dollar.

A successful test of the support at 1.2425 – 1.2450 will open the way to the test of the next support level at 1.2320 – 1.2335.

USD/CAD

USD/CAD
USD/CAD 120424 4h Chart

USD/CAD is moving higher as commodity-related currencies are losing ground despite the strong rally in precious metals markets.

From the technical point of view, USD/CAD needs to settle above the resistance at 1.3780 – 1.3800 to gain additional upside momentum.

USD/JPY

USD/JPY
USD/JPY 120424 4h Chart

USD/JPY settled above the 153.00 level as traders waited for additional catalysts. There are no signs of interventions from the BoJ, which indicates that Japan’s central bank believes that USD/JPY may move even higher.

In case USD/JPY settles above the recent highs at 153.38, it will gain additional upside momentum and move towards the 155.00 level.

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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