EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounds From Session Lows

U.S. Dollar

U.S. Dollar Index moved away from session lows as traders reacted to the PCE Price Index report, which showed that PCE Price Index remained unchanged at 2.7% in April. Personal Income increased by 0.3% month-over-month in April, while Personal Spending grew by 0.2%. The Personal Spending report missed analyst estimates.

In case U.S. Dollar Index settles back above the support at 104.40 – 104.60, it will head towards the 105.00 level.

EUR/USD

EUR/USD pulled back from session highs as traders reacted to the flash readings of the Euro Area inflation reports. Inflation Rate increased from 2.4% in April to 2.6% in May, compared to analyst consensus of 2.5%. Core Inflation Rate grew from 2.7% to 2.9%, while analysts expected that it would grow to 2.8%.

If EUR/USD settles back below the 50 MA at 1.0840, it will move towards the nearest support level, which is located in the 1.0785 – 1.0800 range.

GBP/USD

GBP/USD is mostly flat in volatile trading. Today, traders had a chance to take a look at the Nationwide Housing Prices report, which showed that UK housing prices increased by 0.4% month-over-month in May.

The technical picture remains unchanged as GBP/USD is stuck between the support at 1.2670 – 1.2700 and the resistance at 1.2780 – 1.2800.

USD/CAD

USD/CAD is moving lower despite the pullback in the commodity markets. RSI remains in the moderate territory, so there is plenty of room to gain additional momentum.

If USD/CAD settles below 1.3600, it will move towards the next support level at 1.3480 – 1.3500.

USD/JPY

USD/JPY gains ground despite the pullback in Treasury yields. BoJ’s ultra-dovish policy serves as the key negative catalyst for USD/JPY.

Interestingly, USD/JPY bulls are not worried about potential interventions from the BoJ. In case USD/JPY manages to settle above 157.00, it will head towards the nearest resistance at 158.00 – 158.50.

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