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

U.S. Dollar

U.S. Dollar Index is losing ground amid lack of catalysts. U.S. markets are closed in observance of Independence Day.

A move below the 105.00 level will push U.S. Dollar Index towards the nearest support, which is located in the 104.40 – 104.60 range. RSI is close to the oversold territory but there is enough room to gain additional downside momentum.

EUR/USD

EUR/USD is trying to settle above the resistance at 1.0785 – 1.0800 as traders react to Germany’s Factory Orders report for May. The report indicated that Factory Orders declined by 1.6% month-over-month in May, compared to analyst consensus of +0.5%.

In case EUR/USD manages to settle above the 1.0800 level, it will head towards the next resistance at 1.0900 – 1.0915.

GBP/USD

GBP/USD gains some ground after UK Construction PMI report, which showed that Construction PMI declined from 54.7 in May to 52.2 in June.

GBP/USD needs to settle above the nearest resistance at 1.2780 – 1.2800 to have a chance to gain additional upside momentum.

USD/CAD

USD/CAD tests new lows amid rising demand for commodity-related currencies. Interestingly, commodity markets are mostly quiet today, which is not surprising during a major holiday in the U.S.

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

USD/JPY

USD/JPY pulls back as traders take some profits off the table after the strong rally. Japan’s Central Bank did not intervene to provide support to the Japanese yen, but USD/JPY bulls were not ready to push prices above the 162.00 level.

In case USD/JPY declines below the 50 MA at 160.78, it will get to the test of the nearest support at 160.00 – 160.50. A move below the 160.00 level will open the way to the test of the next support level, which is located in the 158.00 – 158.50 range.

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