EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back In Quiet Trading

Key Insights

• U.S. Dollar Index retreats as traders wait for additional catalysts.
• EUR/USD bulls appear ready to bet on a rebound after the currency pair’s recent multi-week pullback.
• USD/JPY moves higher as traders remain focused on the ultra-dovish policy of the BoJ. 

U.S. Dollar

U.S. Dollar Index pulls back on a slow news day. Many traders have taken a day off for Labor Day, so forex markets may stay calm until tomorrow.

From the technical point of view, U.S. Dollar Index remains stuck below the resistance at 104.40 – 104.70, while the nearest support level is located at 103.40 – 103.65.

EUR/USD

EUR/USD gains ground as some traders are ready to bet on a rebound after the multi-week pullback.

In order to have a chance to gain sustainable upside momentum, EUR/USD needs to settle above the nearest resistance in the 1.0835 – 1.0850 range.

GBP/USD

GBP/USD received support in the 1.2590 – 1.2620 range and is trying to gain additional upside momentum.

In case this attempt is successful, GBP/USD will head towards the nearest resistance level, which is located in the 1.2725 – 1.2750 range.

USD/CAD

USD/CAD is mostly flat while traders stay focused on the dynamics of the oil markets. Other commodity-related currencies are also little changed in today’s trading session.

USD/CAD settled above the 50 MA at 1.3570 and is trying to settle above the 1.3600 level. If this attempt is successful, USD/CAD will move towards the resistance at 1.3650 – 1.3670.

USD/JPY

USD/JPY moves higher as traders stay focused on the ultra-dovish policy of the BoJ. The key problem for those who want to bet on the rebound of the yen is the complete absence of upside catalysts for the Japanese currency.

If USD/JPY manages to settle above the 147.00 level, it will move towards the next resistance at 148.00 – 149.00.

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