EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Retreats As Pullback Continues

Key Insights

• EUR/USD tests resistance at 1.1035 as traders focus on dovish Fed. 
• USD/CAD tested multi-month lows as oil markets rallied. 
• USD/JPY gained ground as Japan’s Unemployment Rate remained unchanged at 2.5%. 

U.S. Dollar

U.S. Dollar Index remains under pressure as traders stay focused on Fed policy outlook.

In case U.S. Dollar Index settles below the 101.50 level, it will head towards the support at 100.50 – 100.80.

EUR/USD

EUR/USD is trying to settle above the resistance at 1.1015 – 1.1035 as traders bet on dovish Fed.

In case this attempt is successful, EUR/USD will move towards the next resistance level, which is located in the 1.1015 – 1.1035 range.

GBP/USD

GBP/USD is mostly flat as traders wait for catalysts. Traders are not ready for big moves due to the holidays in the UK.

From the technical point of view, GBP/USD needs to settle above 1.2750 to gain additional momentum. In this scenario, GBP/USD will head towards the resistance at 1.2820 – 1.2850.

USD/CAD

USD/CAD is losing ground as traders focus on the strong rally in the commodity markets. Other commodity-related currencies are also moving higher in today’s trading session.

A move below the 1.3200 level will open the way to the test of the support at 1.3125 – 1.3150.

USD/JPY

USD/JPY gained some ground as traders reacted to Japan’s Unemployment Rate report, which showed that Unemployment Rate remained unchanged at 2.5% in November.

If USD/JPY settles above the 50 MA at 142.63, it will head towards the next resistance at 144.65 – 145.00.

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