EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Tests New Highs As Traders Focus On Fed Policy Outlook

U.S. Dollar

U.S. Dollar Index gains ground as traders start to prepare for the Fed decision, which will be released on Wednesday. Today, traders focused on Dallas Fed Manufacturing Index report. The report showed that Dallas Fed Manufacturing Index declined from -15.1 in June to -17.5 in July, compared to analyst forecast of -12.

If U.S. Dollar Index stays above the 104.60 level, it will head towards the next resistance level, which is located in the 105.90 – 106.10 range.

EUR/USD

EUR/USD tests new lows as pullback continues. Treasury yields are moving lower, but this move does not provide support to EUR/USD.

The nearest support level for EUR/USD is located in the 1.0785 – 1.0800 range. If EUR/USD declines below 1.0785, it will head towards the next support level at 1.0670 – 1.0690.

GBP/USD

GBP/USD is trying to rebound after the recent pullback. BoE Consumer Credit and Mortgage Approvals missed analyst expectations, which was bearish for GBP/USD.

In case GBP/USD manages to settle back above the resistance at 1.2880 – 1.2900, it will move towards the next resistance level at 1.2980 – 1.3000.

USD/CAD

USD/CAD tests new highs as traders focus on the pullback in the oil markets. Other commodity-related currencies have also found themselves under pressure in today’s trading session.

From the technical point of view, USD/CAD climbed above the 1.3850 level and is moving towards the resistance at 1.3880 – 1.3900.

USD/JPY

USD/JPY gains some ground as traders focus on the upcoming BoJ Interest Rate decision, which will be released on Wednesday. Traders may stay cautious ahead of this event, as BoJ may signal that it is ready to start raising rates.

A move above the resistance at 154.50 – 155.00 will open the way to the test of the next resistance at 158.00 – 158.50.

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