EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecast – U.S. Dollar Rebounds As Treasury Yields Rise

Key Insights

• U.S. Dollar Index is vying to break through the 103.65 resistance level; success could set a course for 104.40 – 104.70.
• As U.S. Treasury yields rebound, EUR/USD is nudging towards key support levels, eyeing a potentially steeper descent.
• USD/JPY gains ground after finding support in the 144.65 – 145.00 range.

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the Initial Jobless Claims report, which indicated that 230,000 Americans filed for unemployment benefits in a week. Durable Goods Orders declined by 5.2% month-over-month, compared to analyst consensus of -4%.

From the technical point of view, U.S. Dollar Index is trying to settle above the resistance at 103.65. In case this attempt is successful, U.S. Dollar Index will head towards the next resistance level, which is located at 104.40 – 104.70.

EUR/USD

EUR/USD tests support at 1.0835 – 1.0850 as traders focus on the rebound in Treasury yields and the general strength of the American currency.

In case EUR/USD settles below the 1.0835 level, it will head towards the next support, which is located at 1.0670 – 1.0700.

GBP/USD

GBP/USD faced resistance near the 1.2725 level and pulled back. At this point, GBP/USD bulls cannot find enough catalysts to push the British pound higher.

From a big picture point of view, GBP/USD is stuck in a range between the support at 1.2620 and the resistance at 1.2725. The general trend remains bearish, and GBP/USD has a good chance to gain additional downside momentum if it settles below the support in the 1.2590 – 1.2620 range.

USD/CAD

USD/CAD gains ground despite the rebound in the oil markets as traders focus on the general dynamics of the U.S. dollar.

Taking a look at the daily chart, USD/CAD settled above the 1.3520 level and is trying to gain additional upside momentum. In case this attempt is successful, it will head towards the resistance at 1.3650 – 1.3670.

USD/JPY

USD/JPY moved higher as Treasury yields rebounded after yesterday’s pullback.

The general trend stays bullish. The support at 144.65 – 145.00 has recently confirmed its strength, so USD/JPY may be ready to gain additional upside momentum in the upcoming trading sessions.

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