EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Dives As Non Farm Payrolls Miss Expectations

Key Insights

• EUR/USD rallied above the 1.0700 level as traders reacted to the Non Farm Payrolls data. 
• GBP/USD gained strong upside momentum and climbed above 1.2350.
• USD/JPY pulled back below the psychologically important 150.00 level. 

U.S. Dollar

U.S. Dollar Index retreats as traders react to the Non Farm Payrolls report, which indicated that U.S. economy added 150,000 jobs in October. The weaker-than-expected report shows that Fed’s rate hikes have already put material pressure on the job market.

In case U.S. Dollar Index settles below the 105.00 level, it will head towards the next support, which is located in the 104.50 – 104.75 range.

EUR/USD

EUR/USD rallies as traders focus on U.S. economic data. Today, traders also had a chance to take a look at the Euro Area Unemployment Rate report, which showed that Unemployment Rate increased from 6.4% in August to 6.5% in September.

If EUR/USD stays above the 1.0700 level, it will move towards the next resistance, which is located in the 1.0765 – 1.0790 range.

GBP/USD

GBP/USD has also managed to gain strong upside momentum as traders focused on the general weakness of the American currency.

From the technical point of view, RSI has already moved into the overbought territory, so the risks of a pullback are increasing.

USD/CAD

USD/CAD remains under pressure despite the pullback in the oil markets. Dollar’s weakness serves as the main bearish catalyst for USD/CAD.

A successful test of the support at 1.3675 – 1.3700 will open the way to the test of the next support level at 1.3570 – 1.3600.

USD/JPY

USD/JPY continues to move lower as traders bet that BoJ will defend the 152.00 level.

The nearest support level for USD/JPY is located in the 148.00 – 149.00 range. A move below 148.00 will open the way to the test of the next support at 144.65 – 145.00.

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