EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As Personal Income Misses Expectations

Key Insights

• EUR/USD climbed towards the 1.0600 level as traders focused on U.S. economic data. 
• USD/CAD tested new highs on short-covering. 
• USD/JPY settled back below the important 150.00 level. 

U.S. Dollar

U.S. Dollar Index pulls back as traders react to the economic data. Personal Income increased by 0.3% month-over-month in September, while Personal Spending grew by 0.7%.

In case U.S. Dollar Index settles below the 50 MA at 106.30, it will head towards the nearest support level, which is located in the 105.65 – 105.90 range.

EUR/USD

EUR/USD received strong support in the 1.0520 – 1.0550 range and moved towards the 1.0600 level.

In case EUR/USD climbs back above 1.0600, it will gain additional upside momentum and head towards the resistance at 1.0670 – 1.0700.

GBP/USD

GBP/USD is slowly moving higher while traders wait for additional catalysts. The problems of the UK economy serve as a bearish catalyst for GBP/USD, but traders will also focus on the general dynamics of the American currency.

If GBP/USD climbs above the 50 MA at 1.2155, it will head towards the nearest resistance at 1.2180 – 1.2200.

USD/CAD

USD/CAD is currently trying to settle above the resistance at 1.3830. It looks that the move is driven by short-covering, as some traders may have decided to short USD/CAD near multi-month highs.

In case USD/CAD stays above the 1.3830 level, it will head towards the next resistance, which is located in the 1.3950 – 1.3975 range.

USD/JPY

USD/JPY pulls back after an unsuccessful attempt to settle above the key 150.00 level.

Most likely, the move is driven by the fear of additional interventions from the BoJ.

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