EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Lacks Momentum As Traders Wait For Powell’s Testimony

U.S. Dollar

U.S. Dollar Index is trying to rebound after the recent pullback in absence of strong catalysts. Fed Chair Powell will testify tomorrow, so traders are not ready for big moves ahead of the key event of the week.

In case U.S. Dollar Index climbs back above the 105.00 level, it will head towards the 50 MA at 105.53.

EUR/USD

EUR/USD is losing some ground as traders react to Germany’s exports data. The country’s exports declined by 3.6% month-over-month in May. The recent data suggests that Germany’s economy remains under pressure, but its problems did not have a material negative impact on the euro.

A move above the 1.0850 level will push EUR/USD towards the nearest resistance, which is located in the 1.0900 – 1.0915 range.

GBP/USD

GBP/USD  moved away from session highs as traders took some profits off the table after the strong rally.

The technical picture remains bullish. However, GBP/USD needs time to consolidate as RSI is in the overbought territory.

USD/CAD

USD/CAD is mostly flat despite the strong pullback in precious metals markets. Other commodity-related currencies are losing ground in today’s trading session.

A successful test of the support at 1.3600 – 1.3620 will open the way to the test of the next support level at 1.3480 – 1.3500.

USD/JPY

USD/JPY is flat as traders stay focused on the dynamics of Treasury yields. The bond market will be sensitive to Powell’s comments, so traders stay cautious. U.S. will release inflation data for June on Thursday, which will also serve as the key catalyst for USD/JPY.

From the technical point of view, USD/JPY made several attempts to settle below the support at 160.00 – 160.50 but failed to develop sufficient momentum. A move above the 50 MA at 161.07 will push USD/JPY towards the resistance at 161.50 – 162.00.

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