EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Is Flat After JOLTs Report

U.S. Dollar

U.S. Dollar Index continues its attempts to settle above the resistance at 105.75 – 106.00 as traders react to Powell’s comments and JOLTs Job Openings report. Powell said that prices were showing disinflation trend. JOLTs Job Openings increased from 7.92 million to 8.14 million.

In case U.S. Dollar Index manages to settle above the resistance at 105.75 – 106.00, it will gain additional upside momentum and move towards the next resistance level at 106.60 – 106.80.

EUR/USD

EUR/USD is mostly flat as traders focus on the Euro Area inflation reports. Euro Area Inflation Rate declined from 2.6% in May to 2.5% in June, while Core Inflation Rate remained unchanged at 2.9%. Core Inflation Rate exceeded analyst estimates, providing some support to the European currency.

EUR/USD received strong support in the 1.0710 – 1.0725 range and made an attempt to settle above the 1.0750. If EUR/USD climbs above 1.0750, it will move towards the resistance at 1.0785 – 1.0800.

GBP/USD

GBP/USD tests resistance at 1.2670 – 1.2700 as traders react to Powell’s words about recent inflation trends.

A move above the 1.2700 level will push GBP/USD towards the next resistance level, which is located in the 1.2780 – 1.2800 range.

USD/CAD

USD/CAD is losing ground after Canada’s Manufacturing PMI report, which showed that Manufacturing PMI remained unchanged at 49.3.

In case USD/CAD settles below the 50 MA at 1.3690, it will move towards the support level at 1.3600 – 1.3620.

USD/JPY

USD/JPY continues to move higher as BoJ does not intervene to provide support to the yen. Many traders believed that Japan’s central bank would try to defend the 160.00 level, but USD/JPY has easily managed to climb above 161.50 and is trying to move above the 162.00 level.

RSI is in the moderate territory, so USD/JPY has enough room to gain additional momentum and move closer to the 165.00 level. Potential interventions from the BoJ are the key risk for the bulls.

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