EUR/USD, GBP/USD and USD/CHF Forecasts – US Dollar Continues to Move on Rates

EUR/USD Technical Analysis

The Euro initially tried to rally during the trading session on Thursday, but has given back gains to show signs of hesitation yet again. We are sitting just above the 50-day EMA, an indicator that a lot of people will be watching to see whether or not it is going to offer support.

More importantly, we are just above the previous support that has already proven itself as well, so all things lead to a potential bounce from here. If we were to break down below the 1.1650 level, then the market could fall. At that point, I could see this pair going to the 1.15 level. To the upside, the 1.18 level is a short-term target with the 1.1850 level following that.

GBP/USD Technical Analysis

The British pound has fallen a bit early during the trading session on Thursday as we are now testing the crucial 1.35 level. The 1.35 level is backed up by the 50-day EMA as well for support and I think you’ve got a situation where value hunters are starting to come back into the market.

We may still be stuck in the same consolidation area that we’d been in previously, with an eye on the 1.36 level above as a potential target.

USD/CHF Technical Analysis

The US dollar has gone back and forth on Thursday in the early trading hours again against the Swiss franc as we continue to grind higher in general, with the 50-day EMA being a potential target above at the 0.7840 level.

The 0.78 level is a bit of a magnet for price, and the 0.7750 level seems to be your support. Ultimately, the interest rate differential continues to favor the US dollar, and I do think eventually we will get a longer-term turnaround, but it will probably be a grind higher, not a race higher.

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