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U.S. Dollar Tests New Highs, EUR/USD and GBP/USD Face Pressures – Forex Forecast

U.S. Dollar Index

U.S. Dollar Index is making strides, aiming to solidify its position above the 105 level, maintaining its robust upward trend. Despite a pullback in Treasury yields, the American currency remains on an upward trajectory.

U.S. Dollar Index Tries to Settle Above 105 as Upside Momentum Persists

Today’s focal point for traders was the Initial Jobless Claims report, which revealed that 216,000 Americans filed for unemployment benefits in a week, slightly below the analysts’ expected figure of 234,000.

EUR/USD Faces Pressure as Euro Area GDP Growth Rate Lags

The EUR/USD currency pair is encountering headwinds as traders react to disappointing news from the Euro Area GDP Growth Rate report, which indicated a sluggish 0.1% growth rate in the second quarter. Currently, EUR/USD is striving to establish a foothold below the critical support range of 1.0670 – 1.0700. A successful break below this level would likely trigger further downside momentum.

GBP/USD Tests New Lows Amidst U.S. Dollar Index Strength

The GBP/USD currency pair is navigating lower waters as traders closely monitor the resilience of the U.S. Index dollar. Should GBP/USD manage to settle beneath the support barrier at 1.2470 – 1.2500, it would likely set its sights on the subsequent support level at 1.2300 – 1.2330.

USD/CAD Hits Fresh Highs After Oil Market Retreat

USD/CAD is ascending to fresh highs as the oil market takes a step back in the wake of a bullish EIA report. Despite the report’s optimism, oil traders opted to pocket some profits following a robust rally. In the event that USD/CAD consolidates its position above the resistance at 1.3650 – 1.3670, it will advance towards the next resistance point at 1.3800 – 1.3830. It affects the U.S. Dollar Index with high pressures.

USD/JPY Loses Ground Amidst Falling Treasury Yields

USD/JPY is facing headwinds as Treasury yields trend lower. The yield of 2-year Treasuries recently dipped below the critical 5.00% level, exerting bearish pressure on USD/JPY. If USD/JPY settles beneath the 50 MA at 146.50, it is poised to target the support level at 144.65 – 145.00.

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Disclaimer: Please note that this article serves solely for informational purposes and should not be construed as financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions


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