EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Rebounds From Session Lows As ISM Services PMI Beats Forecasts

U.S. Dollar

U.S. Dollar Index rebounds from session lows as traders react to the better-than-expected ISM Services PMI report, which indicated that ISM Services PMI increased from 48.8 in June to 51.4 in July. Today’s sell-off in global markets was driven by recession fears, so the encouraging ISM Services PMI data provided some support to the American currency.

In case U.S. Dollar Index manages to settle back above the 103.00 level, it will head towards the nearest resistance, which is located in the 103.50 – 103.75 range.

EUR/USD

EUR/USD is moving away from session highs as traders take some profits off the table after the strong rally. From a big picture point of view, traders bet that Fed will be forced to cut rates aggressively due to the slowdown of the U.S. economy.

If EUR/USD settles back below the 1.0950 level, it will head towards the nearest support at 1.0900 – 1.0915.

GBP/USD

GBP/USD is swinging between gains and losses as traders react to the final reading of the Euro Area Services PMI report, which showed that Services PMI declined from 52.8 to 51.9.

A move above the resistance at 1.2780 – 1.2800 will open the way to the test of the next resistance level at 1.2880 – 1.2900.

USD/CAD

USD/CAD is moving lower despite the strong pullback in precious metals markets as traders focus on general weakness of the American currency.

From the technical point of view, USD/CAD is moving towards the nearest support level, which is located in the 1.3785 – 1.3800 range.

USD/JPY

USD/JPY rebounds amid profit-taking. It should be noted that the strength of the Japanese yen served as the key driver for the major sell-off in the Japanese stock market.

The nearest significant resistance level for USD/JPY is located in the 146.00 – 146.50 range. If USD/JPY climbs above the 146.50 level, it will head towards the next resistance at 149.30 – 149.70.

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