EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground As Markets Calm Down

U.S. Dollar

U.S. Dollar Index continues to rebound after the strong pullback. Markets have calmed down, which served as a bullish catalyst for the American currency. Treasury yields are moving higher, providing additional support to the U.S. dollar.

If U.S. Dollar Index stays above the 103.00 level, it will move towards the nearest resistance level, which is located in the 103.50 – 103.75 range.

EUR/USD

EUR/USD pulled back as traders continued to take profits after the recent rally. Today, traders had a chance to take a look at the Euro Area Retail Sales report. The report showed that Retail Sales declined by 0.3% month-over-month in June, compared to analyst consensus of -0.1%.

A successful test of the support at 1.0900 – 1.0915 will open the way to the test of the next support level at 1.0785 – 1.0800.

GBP/USD

GBP/USD tested new lows as the strong pullback continued. Rising Treasury yields put additional pressure on GBP/USD.

If GBP/USD manages to settle below the support at 1.2685 – 1.2700, it will move towards the next support level, which is located in the 1.2615 – 1.2630 range.

USD/CAD

USD/CAD is losing ground amid rising demand for commodity-related currencies. From a big picture point of view, it looks that USD/CAD needs strong catalysts to move above the resistance at 1.3880 – 1.3900.

In case USD/CAD settles below the support at 1.3785 – 1.3800, it will head towards the next support level at 1.3600 – 1.3620.

USD/JPY

USD/JPY gains ground as the market tries to find the new equilibrium after the strong move.

From the technical point of view, USD/JPY found strong support near the 142.00 level and made an attempt to settle above the resistance at 146.00 – 146.50. If USD/JPY climbs above the 146.50 level, it will head towards the next resistance at 149.30 – 149.70.

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