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EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests New Highs As Rally Continues

By:
Vladimir Zernov
Published: Sep 7, 2023, 16:56 GMT+00:00

Initial Jobless Claims report provided additional support to the American currency.

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

In this article:

Key Insights

  • U.S. Dollar Index tries to settle above the 105 level as the upside trend remains strong. 
  • EUR/USD pulls back as traders react to the weak Euro Area GDP Growth Rate report. 
  • GBP/USD tests new lows as the strong pullback continues. 

U.S. Dollar

DXY
DXY 070923 4h Chart

U.S. Dollar Index continues to move higher despite the pullback in Treasury yields. Today, traders focused on the Initial Jobless Claims report, which showed that 216,000 Americans filed for unemployment benefits in a week. Analysts expected Initial Jobless Claims of 234,000.

DXY
DXY 070923 Daily Chart

Taking a look at the daily chart, RSI is close to the overbought territory, but there is enough room to gain additional upside momentum.

EUR/USD

EUR/USD
EUR/USD 070923 4h Chart

EUR/USD remains under pressure as traders focus on the disappointing Euro Area GDP Growth Rate report, which showed that Euro Area GDP Growth Rate was 0.1% in the second quarter.

Currently, EUR/USD is trying to settle below the support at 1.0670 – 1.0700. In case this attempt is successful, EUR/USD will gain additional downside momentum.

GBP/USD

GBP/USD
GBP/USD 070923 4h Chart

GBP/USD is also moving lower as traders focus on the general strength of the U.S. dollar.

In case GBP/USD manages to settle below the support at 1.2470 – 1.2500, it will head towards the next support level at 1.2300 – 1.2330.

USD/CAD

USD/CAD
USD/CAD 070923 4h Chart

USD/CAD tests new highs as oil markets pull back after the EIA report. The report was bullish, but oil traders decided to take some profits off the table after the strong rally.

USD/CAD
USD/CAD 070923 Daily Chart

In case USD/CAD settles above the resistance at 1.3650 – 1.3670, it will move towards the next resistance at 1.3800 – 1.3830.

USD/JPY

USD/JPY
USD/JPY 070923 4h Chart

USD/JPY is losing ground as Treasury yields are moving lower. The yield of 2-year Treasuries settled back below the 5.00% level, which was bearish for USD/JPY.

In case USD/JPY settles below the 50 MA at 146.50, it will head towards the support level at 144.65 – 145.00.

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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