EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats On Harker’s Dovish Comments

Key Insights

• EUR/USD tries to settle above 1.0550 as traders focus on dovish comments from Fed’s Harker. 
• GBP/USD tests resistance at 1.2180 – 1.2200.
• USD/JPY remains stuck below 150.00 as bulls worry about potential interventions from the BoJ. 

U.S. Dollar

U.S. Dollar Index is losing ground despite rising Treasury yields. Fed’s Harker said that high interest rates put too much pressure on first-time home buyers and reiterated that Fed can hold the rates where they were.

In case U.S. Dollar Index moves below the 50 MA at 106.25, it will head towards the nearest support level, which is located in the 105.65 – 105.90 range.

EUR/USD

EUR/USD received support in the 1.0520 – 1.0550 range and is moving higher as traders focus on Harker’s dovish comments.

In case EUR/USD settles above the 1.0550 level, it will head towards the nearest resistance at 1.0670 – 1.0700.

GBP/USD

GBP/USD is currently trying to settle above the resistance at 1.2180 – 1.2200 as traders bet that Fed will not raise rates again this year.

In case this attempt is successful, GBP/USD will head towards the next significant resistance at 1.2370 – 1.2410, although it may also face resistance near the 1.2300 level.

USD/CAD

USD/CAD is moving lower despite the pullback in the oil markets. Traders focus on the general weakness of the U.S. dollar.

RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum. A move below 1.3600 will push USD/CAD towards the support at 1.3500 – 1.3520.

USD/JPY

USD/JPY stabilized near the 149.50 level as traders waited for additional catalysts. Bulls are not ready to push USD/JPY above 150.00 as they fear that BoJ will intervene.

The technical picture remains bullish, but USD/JPY will need significant catalysts to move higher as potential BoJ interventions serve as a major obstacle on the way up.

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