EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Moves Higher After Retail Sales Report

U.S. Dollar

U.S. Dollar Index gains ground as traders react to the Retail Sales report, which indicated that Retail Sales were unchanged in June. Retail Sales Ex Autos increased by 0.4% month-over-month, compared to analyst consensus of +0.1%. Today, traders also focused on the NAHB Housing Market Index report, which showed that NAHB Housing Market Index declined from 43 in June to 42 in July.

The nearest resistance level for U.S. Dollar Index is located in the 104.40 – 104.60 range. A move above the 104.60 level will push U.S. Dollar index towards the next resistance at 105.75 – 106.00.

EUR/USD

EUR/USD is moving lower as traders react to the weaker-than-expected Euro Area ZEW Economic Sentiment Index report. The report showed that Economic Sentiment decreased from 51.3 in June to 43.7 in July, compared to analyst consensus of 48.1.

In case EUR/USD declines below the 50 MA at 1.0850, it will head towards the support at 1.0785 – 1.0800.

GBP/USD

GBP/USD is losing ground as traders focus on general strength of the U.S. dollar. GBP/USD needs additional positive catalysts to climb above the 1.3000 level.

On the support side, a move below 1.2950 will push GBP/USD towards the support at 1.2880 – 1.2900.

USD/CAD

USD/CAD is mostly flat despite the rally in precious metals markets. Oil markets are under pressure, which is bearish for Canadian dollar.

If USD/CAD settles above the 1.3700 level, it will head towards the resistance at 1.3785 – 1.3800.

USD/JPY

USD/JPY gains ground despite falling Treasury yields. Some traders are ready to bet on a rebound towards recent highs.

In case USD/JPY stays above the 158.50 level, it will head towards the nearest resistance, which is located in the 160.00 – 160.50 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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