EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests Weekly Highs

U.S. Dollar

U.S. Dollar Index gains ground as traders react to Michigan Consumer Sentiment report for June. The report indicated that Consumer Sentiment declined from 69.1 in May to 65.6 in June, compared to analyst consensus of 72. Importantly, long-run inflation expectations increased from 3.0% to 3.1%.

Currently, U.S. Dollar Index is trying to settle above the resistance at 105.75 – 106.00. In case this attempt is successful, it will head towards the next resistance level at 106.60 – 106.80.

EUR/USD

EUR/USD is losing ground as the pullback continues. The ECB has already started its rate cut cycle, while Fed will not cut rates in the near term.

In case EUR/USD settles below the support at 1.0710 – 1.0725, it will move towards the next support level, which is located in the 1.0600 – 1.0620 range.

GBP/USD

GBP/USD tests new lows as traders stay focused on general strength of the American currency. At this point, GBP/USD needs significant catalysts to break the current trend.

If GBP/USD manages to settle below the nearest support at 1.2670 – 1.2700, it will move towards the next support level at 1.2550 – 1.2575.

USD/CAD

USD/CAD is moving away from session highs after an unsuccessful attempt to settle above the resistance at 1.3785 – 1.3800. Rising commodity markets provide some support to the Canadian dollar.

A move below the 50 MA at 1.3724 will push USD/CAD towards the next support level at 1.3600 – 1.3620.

USD/JPY

USD/JPY made an attempt to settle above the key resistance at 158.00 – 158.50 as traders reacted to the BoJ Interest Rate Decision. The BoJ left the interest rate unchanged at 0.1%, in line with analyst expectations. The bank also noted that it would provide the details on bond-taper plan in July.

In case USD/JPY settles above the 158.50 level, it will gain additional upside momentum and move towards the psychologically important 160.00 level. Traders should note that intervention risks would increase if USD/JPY moves towards 160.00.

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