EUR/USD, GBP/USD and USD/CHF Forecasts – US Dollar Trying to Fight Back Against Europe

EUR/USD Technical Analysis

The Euro currently is basically unchanged during the trading session on Monday trying to find support between the 1.18 and the 1.1850 regions, which makes a certain amount of sense considering it was the previous resistance barrier that we broke out of and now the pullback is trying to find a little bit of follow-through.

I think the next day or two will be very crucial, but also keep in mind that the jobs report in the United States comes out on Friday, so this will be one of those weeks where we may have some movement for a day or two, and then everything will freeze, would be my guess. The uptrend is still very intact, though.

GBP/USD Technical Analysis

The British Pound finds itself just hanging around the 1.37 level trying to find footing here after an explosive move to the upside. With that being the case, I think we have to look at this as a market that if we can recapture the 1.38 level that would be a very bullish sign and could send the British Pound looking to the 1.40 level. A breakdown from here could send the market down to the 1.35 level.

USD/CHF Technical Analysis

The US Dollar continues recovering against the Swiss Franc in what could end up being a bit of a sleeper trade. We are quite a distance from the 0.79 level, but recapturing that would be huge for the Dollar.

Keep in mind that the interest rate differential favors the United States Dollar, and of course, the Swiss National Bank has threatened to intervene a couple of times recently as the Swiss Franc got too strong. If the US Dollar is going to strengthen, this might be a nice long-term swing type of play. I have no interest in shorting. If I want to sell the US Dollar, I will sell it against something like the British Pound.