EUR/USD, GBP/USD and USD/CHF Forecasts – US Dollar Drifts Lower

Euro/USD Technical Analysis

The euro has rallied a bit during the early hours here on Monday as we continue to threaten the 1.18 level. The 1.18 level is an area that extends all the way to the 1.1850 level as significant resistance.

I do think that signs of exhaustion will probably be sold into, but if we can clear the 1.1850 level, then we could go higher. The 50-day EMA at the 1.1693 level and rising is your support level at the moment.

British Pound/US Dollar Technical Analysis

The British pound has rallied to break above the 1.36 level, but we see a lot of trouble just above here and I would anticipate that we only have so much upside from here. I don’t really have a real drive to start buying this pair here.

I think probably what you’ve got is more or less a short-term, back and forth, range bound type of market, as we’re just trying to determine what’s going on in the Middle East, which could give us an idea of what’s going on overall with interest rates, and then, of course, currencies. The 1.35 level for me is the floor.

US Dollar/Swiss Franc Technical Analysis

The US dollar rallied slightly against the Swiss franc but is struggling a little bit at the 0.78 level. The 0.78 level being broken to the upside opens up the possibility of a move to the 50-day EMA, which is currently at the 0.7844 level.

Clearing that opens up the 0.79 level. Remember that the interest rate differential certainly helps the US dollar over the longer term, so given enough time, I do think that we have a situation where you’re buying the dip, but it’s probably going to be slow trading at the moment.

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