EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests Multi-Month Lows As Pullback Continues

Key Insights

• EUR/USD moved towards the 1.1000 level as Germany’s Consumer Confidence improved. 
• USD/CAD tested new lows as traders focused on the rally in the oil markets. 
• USD/JPY declined below the 148.00 level. 

U.S. Dollar

U.S. Dollar Index is losing ground as traders react to the Case-Shiller Home Price Index report, which indicated that home prices increased by 0.2% month-over-month in September.

In case U.S. Dollar Index settles below the 102.50 level, it will head towards the nearest material support at 101.75 – 102.00.

EUR/USD

EUR/USD tests new highs as traders focus on GfK Consumer Confidence report from Germany, which showed that Consumer Confidence improved from -28.3 in November to -27.8 in December.

From the technical point of view, EUR/USD settled above the previous resistance at 1.0925 – 1.0950 and is moving towards the next resistance level, which is located in the 1.1070 – 1.1100 range.

GBP/USD

GBP/USD made an attempt to settle above the 1.2700 level as traders focused on the general weakness of the American currency.

Traders should note that RSI moved into the overbought territory, so the risks of a pullback are increasing.

USD/CAD

USD/CAD tests support at 1.3570 – 1.3600 as oil markets rally amid hopes for additional support from OPEC+.

A successful test of the support at 1.3570 – 1.3600 will push USD/CAD towards the 1.3500 level.

USD/JPY

USD/JPY is currently trying to settle below the support at 148.00 – 149.00 as traders bet that Fed would be forced to cut rates in the first half of the next year.

In case USD/JPY settles below 148.00, it will head towards the next support at 144.65 – 145.00.

For a look at all of today’s economic events, check out our economic calendar.