EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As NAHB Housing Market Index Misses Expectations

U.S. Dollar

U.S. Dollar Index is losing some ground as traders react to the NAHB Housing Market Index report. The report indicated that NAHB Housing Market Index declined from 45 in May to 43 in June, compared to analyst consensus of 45.

If U.S. Dollar Index declines below the support at the 50 MA at 105.22, it will move towards the next support level, which is located in the 104.40 – 104.60 range.

EUR/USD

EUR/USD is trying to settle above the 50 MA at 1.0750 as the rebound continues. Interestingly, EUR/USD bulls are not worried about hawkish Fed.

A move above the 50 MA will open the way to the test of the next resistance level at 1.0785 – 1.0800.

GBP/USD

GBP/USD gains some ground as traders react to UK inflation reports. Inflation Rate declined from 2.3% in April to 2% in May, in line with analyst expectations. Core Inflation Rate decreased from 3.9% to 3.5%. The report has also met analyst estimates.

RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. If GBP/USD climbs above the 50 MA at 1.2729, it will head towards the next resistance level at 1.2780 – 1.2800.

USD/CAD

USD/CAD is moving lower as traders focus on the strong performance of precious metals markets. Other commodity-related currencies are mixed in today’s trading session.

In case USD/CAD declines below the 1.3700 level, it will move towards the next support at 1.3600 – 1.3620.

USD/JPY

USD/JPY is stuck below the 158.00 level as traders are worried about potential interventions from the BoJ, which remain the key risk for USD/JPY bulls. Fundamentally, the Japanese yen is weak due to the ultra-dovish policy of the BoJ.

A move above the resistance at 158.00 – 158.50 will provide USD/JPY with a chance to gain additional upside momentum.

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