EUR/USD, GBP/USD and USD/CHF Forecasts – US Dollar Slightly Bid on Thursday

Forex Markets Technical Analysis

The Euro has drifted a little bit lower during the trading session on Thursday, breaking again below the 200-day EMA. The 1.15 level underneath continues to be support and I think you need to watch that level very closely because if we do break down below there, it’s likely that we go to the 1.14 level and then the 1.11 level. Short-term rallies I think may make opportunity to start shorting, but all things being equal if we were to break above the 1.1650 level then you have the possibility of the Euro going to the 50-day EMA which is at the 1.1727 region.

Mixed Sentiments Across Majors

The British Pound has fallen a bit against US dollar, but it does look like we are pushing back at the 200-day EMA in order to keep the British Pound somewhat stable. All things being equal, I think this is a market that is also in consolidation because, quite frankly, a lot of traders out there just don’t know what to do with the global situation. Furthermore, you have the Bank of England trying to start to cut rates, but it also has a major issue with the fact that if energy is going to become much more expensive, it’s going to drive up inflation, and they may have to wait to cut. So, we’ll see, there’s a push and pull here as we are in the middle of the overall consolidation range and sitting at the 200-day EMA. This is a very neutral pair.

The US dollar has rallied slightly against the Swiss franc, and it does look like it’s trying to break out to the upside. This is a grinding pair. Ultimately, I think we could go looking to the 0.79 level, but it’s going to be slow. It’s going to be very difficult, but if we were to drop from here, I think there’s plenty of support near the 0.7750 level, barring some type of massive headline shakeup, which, of course, unfortunately, is very possible at this point.