EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Gains Some Ground At The Start Of The Week

U.S. Dollar

U.S. Dollar Index gains some ground as traders react to NY Empire State Manufacturing Index report. The report indicated that NY Empire State Manufacturing Index declined from -6.00 to June to -6.60 in July, while analysts expected that it would remain unchanged.

In case U.S. Dollar Index climbs back above the nearest resistance at 104.40 – 104.60, it will move towards the next resistance level at 105.75 – 106.00.

EUR/USD

EUR/USD continues its attempts to settle above the nearest resistance at 1.0900 – 1.0915. Today, traders had a chance to take a look at the Euro Area Industrial Production report, which indicated that Industrial Production declined by 0.6% month-over-month in May.

A move above 1.0915 opens the way to the test of the next resistance level at 1.1000 – 1.1015.

GBP/USD

GBP/USD pulls back after an unsuccessful attempt to settle above the psychologically important 1.3000 level.

In case GBP/USD declines below 1.2950, it will head towards the nearest support, which is located in the 1.2880 – 1.2900 range.

USD/CAD

USD/CAD rebounds despite rising precious metals markets amid declining demand for commodity-related currencies.

If USD/CAD manages to settle back above the 1.3700 level, it will head towards the resistance at 1.3785 – 1.3800.

USD/JPY

USD/JPY is stuck near the 158.00 level as traders wait for catalysts. From a big picture point of view, traders will soon start to prepare for Fed Interest Rate Decision, which will have a material impact on USD/JPY dynamics. Fed Decision will be released on July 31.

In case USD/JPY settles below the 158.00 level, it will head towards the support, which is located in the 154.50 – 155.00 range. It should be noted that RSI remains in the oversold territory, so the risks of a rebound are increasing. A move above the 158.50 level will push USD/JPY towards the resistance at 160.00 – 160.50.

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