EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Ground Despite Falling Treasury Yields

U.S. Dollar

U.S. Dollar Index gains some ground as traders react to Existing Home Sales report, which indicated that Existing Home Sales declined by 5.4% month-over-month in June.

If U.S. Dollar Index manages to settle above the resistance at 104.40 – 104.60, it will move towards the next resistance level at 105.90 – 106.10.

EUR/USD

EUR/USD is losing ground as traders focus on the Euro Area Consumer Confidence report. The report indicated that Consumer Confidence improved from -14 to -13, compared to analyst consensus of -13.4.

In case EUR/USD settles below the 1.0850 level, it will head towards the next support, which is located in the 1.0785 – 1.0800 range.

GBP/USD

GBP/USD made an attempt to settle below the support at 1.2880 – 1.2900 as traders focused on general strength of the American currency.

A move below the 1.2880 level will open the way to the test of the next support at 1.2780 – 1.2800.

USD/CAD

USD/CAD remains stuck below the key resistance at 1.3785 – 1.3800 as traders wait for additional catalysts. The pullback in the oil markets did not put material pressure on the Canadian dollar in today’s trading session.

If USD/CAD moves back below the 1.3750 level, it will head towards the 50 MA at 1.3688. A move below the 50 MA will open the way to the test of the support at 1.3600 – 1.3620.

USD/JPY

USD/JPY pulls back as traders focus on falling Treasury yields. The yield of 2-year Treasuries declined below the 4.50% level, while the yield of 10-year Treasuries settled below 4.25%.

If USD/JPY settles below the 156.00 level, it will head towards the nearest support, which is located in the 154.50 – 155.00 range. RSI remains in the moderate territory, so there is enough room to gain additional downside momentum in case the right catalysts emerge.

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