EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests New Highs

Key Insights

• Rising Treasury yields provided strong support to the American currency. 
• EUR/USD tested new lows after the release of the disappointing Ifo Business Climate report from Germany. 
• USD/JPY moved towards the 149.00 level as traders focused on rising Treasury yields. 

U.S. Dollar

U.S. Dollar Index gains ground as Treasury yields test new highs. The yield of 10-year Treasuries settled above the 4.50% level, while the yield of 30-year Treasuries moved towards the 4.65% level.

Taking a look at the daily chart, U.S. Dollar Index is currently trying to settle above the 106 level. In case this attempt is successful, U.S. Dollar Index will head towards the resistance at 106.90 – 107.20.

EUR/USD

EUR/USD tested new lows as traders reacted to the Ifo Business Climate report from Germany. The report showed that Business Climate declined from 85.8 in August to 85.7 in September.

From the technical point of view, EUR/USD settled below the previous support at 1.0670 and is moving towards the next support level, which is located in the 1.0520 – 1.0550 range.

GBP/USD

GBP/USD remains under pressure as traders focus on rising Treasury yields and problems of the UK economy.

It should be noted that RSI is in the oversold territory, so the risks of a rebound are increasing.

USD/CAD

USD/CAD is swinging between gains and losses as traders wait for the next moves in the oil market. Currently, WTI oil remains stuck near the $90.00 level.

The nearest resistance level for USD/CAD is located in the 1.3500 – 1.3520 range. A move above 1.3520 will open the way to the test of the resistance at 1.3675 – 1.3700.

USD/JPY

USD/JPY is moving towards the 149.00 level as Treasury yields rise. There are no signs of interventions from the BoJ.

If USD/JPY climbs above the 149.00 level, it will head towards the psychologically important 150.00 level. The BoJ may try to defend this level as it did back in October 2022.

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