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

Key Insights

• EUR/USD pulled back towards 1.0800 as traders reacted to the Euro Area Services PMI report. 
• GBP/USD declined towards the 1.2600 level despite the better-than-expected UK Services PMI data. 
• USD/JPY remained stuck near the 147.00 level as traders ignored falling Treasury yields. 

U.S. Dollar

U.S. Dollar Index gains ground despite the disappointing JOLTs Job Openings report, which showed that JOLTs Job Openings declined to 8.73 million in October.

In case U.S. Dollar Index manages to settle above the 103.75 level, it will move towards the resistance at 104.50 – 104.75.

EUR/USD

EUR/USD remains under pressure after the release of the Euro Area Services PMI report, which indicated that Services PMI improved from 47.8 in October to 48.7 in November. Numbers below 50 show contraction.

The nearest support level for EUR/USD is located in the 1.0765 – 1.0790 range. In case EUR/USD settles below 1.0765, it will head towards the next support at 1.0660 – 1.0680.

GBP/USD

GBP/USD is trying to settle below 1.2600 as the pullback continues. The better-than-expected UK Services PMI report did not provide support to the British pound as traders remained focused on the general dynamics of the American currency.

A move below the 1.2600 level will open the way to the test of the next support level at 1.2370 – 1.2410.

USD/CAD

USD/CAD has recently made an attempt to settle above the 1.3600 level but lost momentum and pulled back as oil markets rebounded from session lows.

In case USD/CAD climbs above 1.3600, it will head towards the resistance at 1.3675 – 1.3700.

USD/JPY

USD/JPY remains stuck near the 147.00 level as traders wait for catalysts. Interestingly, the pullback in Treasury yields did not put pressure on USD/JPY.

If USD/JPY settles above 147.00, it will move towards the nearest resistance, which is located in the 148.00 – 149.00 range.

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