EUR/USD, GBP/USD and USD/CHF Forecast – Dollar Struggling into the Weekend

EUR / U.S. Dollar Technical Analysis

The Euro has risen ever so slightly during the trading session on Friday and as we continue to see a lot of questions asked of the 1.18 level, an area that I think will be of importance. We had broken above there; we’ve pulled back to test previous resistance as potential support and now we’ll have to see if that holds.

If we were to turn around and break down below the 50-day EMA, that could open up a move down to the 1.16 level.

British Pound / U.S. Dollar Technical Analysis

The British Pound looks rather bullish with the 1.35 level offering support right along with the 50-day EMA. With that being the case, I think we’ve got a situation where buyers continue to look for value every time it appears on dips.

Ultimately, if we were to break down below the 50-day EMA, then it’s likely that we could go down to the 200-day EMA. But I also recognize that it’s just as equally possible that we go to the 1.3750 level, an area that previously had been significant resistance.

Ultimately, I think we have a buy on the dip market just waiting to happen and we’ll just have to wait and see.

U.S. Dollar / Swiss Franc Technical Analysis

The US Dollar is somewhat stable against the Swiss Franc during the trading session here on Friday as we hang around below the 0.78 level. The 0.78 level is an important level over the last couple of weeks and if we can break above there on a daily close, I think that bodes well for the US Dollar, at least in the short term.

Remember, you get paid to hang on to this pair to the upside, so you can make an argument for that as well as the Swiss National Bank is not really happy about the strengthening Swiss Franc.

But it is a downtrend, so you have to look at this through the prism of a long-term trend with small position sizing if you do go that route. If we fall from here, the 0.76 level could be the next target for the bears.

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