EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Away From Session Highs

U.S. Dollar

U.S. Dollar Index moved away from session highs as traders reacted to the Michigan Consumer Sentiment report, which showed that Consumer Sentiment declined from 77.2 in April to 67.4 in May. Analysts expected that Consumer Sentiment would decrease to 76, so the report missed expectations.

If U.S. Dollar Index moves above the 50 MA at 105.45, it will head towards the next resistance at 105.75 – 106.00.

EUR/USD

EUR/USD is losing some ground as traders focus on rising Treasury yields and wait for additional catalysts.

From the technical point of view, EUR/USD remains stuck below the nearest resistance at 1.0785 – 1.0800. If EUR/USD manages to settle above the 1.0800 level, it will head towards the next resistance, which is located in the 1.0870 – 1.0885 range.

GBP/USD

GBP/USD is mostly flat as traders react to UK economic reports. GDP Growth Rate was 0.6% in the first quarter, compared to analyst consensus of +0.4%. Industrial Production increased by 0.2% month-over-month in March, while Manufacturing Production grew by 0.3%.

A move above 1.2550 will open the way to the test of the resistance at 1.2670 – 1.2700.

USD/CAD

USD/CAD is losing ground as precious metals continue to move higher. Other commodity-related currencies have found themselves under pressure in today’s trading session.

The nearest support level for USD/CAD is located at 1.3600 – 1.3620. A successful test of this level will push USD/CAD towards the next support at 1.3480 – 1.3500.

USD/JPY

USD/JPY gains ground as traders stay focused on the fundamental weakness of the Japanese yen. There are no signs of interventions from the BoJ, which is not surprising as Japan’s central bank will likely try to defend the 158.00 – 160.00 level.

In case USD/JPY settles above 156.00, it wil head towards the nearest resistance at 158.00 – 158.50. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum. Traders should note that BoJ may intervene if USD/JPY climbs above 158.00.

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