EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats As Treasury Yields Move Lower

Key Insights

• EUR/USD tested multi-week highs above the 1.0650 level. 
• GBP/USD moved above the important 1.2200 level. 
• USD/JPY was trading below 150.00 as bulls were worried about potential interventions from the BoJ. 

U.S. Dollar

U.S. Dollar Index is moving lower as traders focus on the pullback in Treasury yields.

In case U.S. Dollar Index settles below the support at 105.65 – 105.90, it will move towards the next support level, which is located in the 104.50 – 104.75 range.

EUR/USD

EUR/USD gained upside momentum as traders continued to prepare for the ECB Interest Rate Decision, which will be released on Thursday.

The nearest resistance for EUR/USD is located in the 1.0670 – 1.0700 range. A move above 1.0700 will push EUR/USD towards the resistance at 1.0765 – 1.0790.

GBP/USD

GBP/USD is also moving higher as traders focus on the general weakness of the American currency.

In case GBP/USD stays above the 1.2200 level, it will gain additional upside momentum and head towards the next resistance at 1.2370 – 1.2410.

USD/CAD

USD/CAD is moving lower despite the strong sell-off in the oil markets. Other commodity-related currencies are also gaining ground in today’s trading session.

If USD/CAD settles below 1.3675, it will head towards the support level at 1.3500 – 1.3520.

USD/JPY

USD/JPY remains stuck below the key 150.00 level. Bulls worry that BoJ will intervene in case USD/JPY moves above 150.00.

At the same time, the yen is fundamentally weak, so USD/JPY lacks downside catalysts. At some point, the current balance will break, and USD/JPY will have a good chance to gain momentum.

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