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

U.S. Dollar

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 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 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 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 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.