EUR/USD, GBP/USD and USD/CHF Forecasts – US Dollar Giving Back Gains

EUR/USD Technical Analysis

The Euro had initially started to fall towards the 1.14 level. That’s an area that is at the bottom of a larger consolidation range. The market turning the way it has from the 1.14 level tells me that we are more likely than not going to remain in this range. Ultimately, I do think this is a market that probably bounces for a few days, so I think it is certainly a great risk-to-reward ratio. A clear support underneath. Could go looking all the way to the 1.16 level again, based on the 200-day EMA.

GBP/USD Technical Analysis

The British pound has also fallen but turned around to show signs of life. If we can jump over the 1.3250 level, that could be a sign that we are going to recover towards the 200-day EMA as well. If we break down below 1.3150, then we could go to the 1.3050 level.

USD/CHF Technical Analysis

The US dollar has given back a bit of the gains against the Swiss franc, testing the 0.81 level but failing. The question now is, can we turn around? I think ultimately, we do, but a little bit of a pullback makes quite a bit of sense. That pullback should be thought of as a potential short-term selling opportunity but a longer-term buying opportunity. If you’re a day trader, maybe there’s a play here to the downside, but if you’re a longer-term trader, clearly, we are doing everything we can to form a huge bottom that might be for quite some time.

The Federal Reserve is expected to raise interest rates by 25 basis points this year. The Swiss may never do it again; we just don’t know. So, with that being the case, it does make sense that this market eventually continues to the upside.

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