EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests Multi-Month Lows As Pullback Continues
- U.S. dollar moved lower as CB Leading Index dropped by 0.8% month-over-month in October.
- EUR/USD climbed towards the 1.0950 level as the rally continued.
- USD/JPY dropped below the 149.00 level.
If U.S. Dollar Index settles below the support at 103.50 – 103.75, it will head towards the next support level, which is located in the 101.75 – 102.00 range.
EUR/USD gains ground as traders react to Germany’s PPI report, which indicated that PPI declined by 0.1% month-over-month in October.
In case EUR/USD manages to settle above the resistance at 1.0925 – 1.0950, it will move towards the next resistance level at 1.1070 – 1.1100.
GBP/USD is also moving higher as traders focus on the general weakness of the American currency. Traders expect that Fed will start cutting rates in 2024, which is bearish for the U.S. dollar.
A move above the 1.2500 level will provide GBP/USD with an opportunity to gain additional upside momentum and push it towards the next resistance at 1.2650 – 1.2685.
USD/CAD is mostly flat despite the strong rebound in the oil markets. Interestingly, other commodity-related currencies are moving higher in today’s trading session.
USD/CAD received strong support in the 1.3700 – 1.3675 range. If USD/CAD climbs above the 50 MA at 1.3757, it will head towards the next resistance at 1.3800 – 1.3830.
USD/JPY is losing ground as traders stay focused on the recent changes in Fed policy outlook.
In case USD/JPY manages to settle below the support at 148.00 – 149.00, it will head towards the next support level, which is located in the 144.65 – 145.00 range.
For a look at all of today’s economic events, check out our economic calendar.