EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests Multi-Month Lows

U.S. Dollar

U.S. Dollar Index is losing ground as traders bet on dovish Fed. There are no important economic reports scheduled to be released in the U.S. today, so traders will stay focused on general market sentiment.

Currently, U.S. Dollar Index is trying to settle below the support at 102.00 – 102.20. In case this attempt is successful, U.S. Dollar Index will head towards the next support level at 100.80 – 101.00. It should be noted that RSI is in the oversold territory, so the risks of a rebound are increasing.

EUR/USD

EUR/USD tests new highs as traders focus on the pullback in Treasury yields. The yield of 2-year Treasuries settled near 4.05%, while the yield of 10-year Treasuries declined towards the 3.85% level.

From the technical point of view, EUR/USD is heading towards the nearest resistance level at 1.1110 – 1.1135.

GBP/USD

GBP/USD gains ground as traders focus on general weakness of the American currency. Traders sell U.S. dollar ahead of Jackson Hole symposium.

In case GBP/USD climbs above the 1.3000 level, it will move towards the resistance at 1.3030 – 1.3045.

USD/CAD

USD/CAD tests new lows amid rising demand for commodity-related currencies. The pullback in the oil markets did not put pressure on the Canadian dollar.

If USD/CAD settles below the 1.3650 level, it will head towards the support at 1.3600 – 1.3620. On the upside, a move above 1.3680 will lead to the test of the nearest resistance at 1.3700 – 1.3715.

USD/JPY

USD/JPY pulled back amid falling Treasury yields. The dynamics of the Treasury market remain a key catalyst for USD/JPY due to the dovish policy of the BoJ.

In case USD/JPY manages to settle below the support at 146.00 – 146.50, it will head towards the next support level at 141.80 – 142.50.

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