EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back Ahead Of The Weekend

U.S. Dollar

U.S. Dollar Index pulls back as traders take some profits off the table after the strong rebound from recent lows. Treasury yields are moving lower, which is bearish for the American currency.

In case U.S. Dollar Index settles back below the 103.00 level, it will head towards the next support, which is located in the 102.00 – 102.20 range.

EUR/USD

EUR/USD is flat as traders react to the final reading of Germany’s inflation data. Inflation Rate increased from 2.2% in June to 2.3% in July, in line with the analyst consensus.

A successful test of the support at 1.0900 – 1.0915 will push EUR/USD towards the next support level at 1.0785 – 1.0800.

GBP/USD

GBP/USD gained some ground but did not manage to climb above the nearest resistance at 1.2780 – 1.2800.

If GBP/USD moves above the 1.2800 level, it will gain additional upside momentum and move towards the next resistance at 1.2930 – 1.2950. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

USD/CAD

USD/CAD is flat as traders wait for additional catalysts. Other commodity-related currencies have found themselves under pressure in today’s trading session.

In case USD/CAD climbs back above the 1.3750 level, it will head towards the nearest resistance at 1.3785 – 1.3800.

USD/JPY

USD/JPY is losing ground amid falling Treasury yields. From a big picture point of view, traders have calmed down after recent volatility. The recent comments from BoJ, which indicated that it would not raise rates if markets remain volatile, put some pressure on the Japanese yen.

The nearest support level for USD/JPY is located in the 146.00 – 146.50 range. A move below the 146.00 level will provide USD/JPY with a chance to gain additional downside momentum.

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