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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests New Highs After PMI Reports

By:
Vladimir Zernov
Published: Oct 2, 2023, 16:38 GMT+00:00

The better-than-expected S&P Global Manufacturing PMI and ISM Manufacturing PMI reports provided additional support to the American currency. 

EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts

In this article:

Key Insights

  • EUR/USD pulled back below the 1.0500 level as PMI reports showed that Germany’s economy remained under strong pressure. 
  • GBP/USD declined towards the 1.2100 level as Treasury yields moved higher. 
  • USD/CAD moved towards the resistance at 1.3675 as WTI oil slipped below the $90.00 level. 

U.S. Dollar

DXY
DXY 0201023 4h Chart

U.S. Dollar Index tests new highs as traders react to the better-than-expected Manufacturing PMI reports.

RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge.

EUR/USD

EUR/USD
EUR/USD 021023 4h Chart

EUR/USD is losing ground as traders focus on the problems of the European economy after the disappointing Manufacturing PMI report from Germany. Europe’s leading economy remains under strong pressure, which is bearish for euro.

EUR/USD
EUR/USD 021023 Daily Chart

Taking a look at the daily chart, a successful test of the support at 1.0520 will push EUR/USD towards the next support level, which is located in the 1.0360 – 1.0400 area.

GBP/USD

GBP/USD
GBP/USD 021023 4h Chart

GBP/USD is also moving lower as traders focus on the general strength of the American currency.

GBP/USD
GBP/USD 021023 Daily Chart

From the technical point of view, GBP/USD settled below the support at 1.2180 and is moving towards the next support level, which is located in the 1.2000 – 1.2030 range.

USD/CAD

USD/CAD
USD/CAD 021023 4h Chart

USD/CAD rallied as traders reacted to the pullback in the oil market. Rising demand for U.S. dollar provided additional support to USD/CAD.

Currently, USD/CAD is trying to settle above the resistance at 1.3675 – 1.3700. RSI is in the overbought territory, so the risks of a pullback are increasing.

USD/JPY

USD/JPY
USD/JPY 021023 4h Chart

USD/JPY is moving towards the 150 level as the BoJ does not intervene to provide support to the Japanese yen.

USD/JPY
USD/JPY 021023 Daily Chart

If USD/JPY climbs above 150, it will head towards the next resistance at 151.50 – 152.00.

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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