EUR/USD, GBP/USD and USD/NOK Forecasts – US Dollar Continues to See Strength

EUR/USD Technical Analysis

The Euro has fallen again during early trading here on Thursday as we continue to see quite a bit of downward pressure. Ultimately, I think this is a market that is likely to continue to see short-term rallies as selling opportunities, with the 1.14 level being an area that should have a certain amount of market memory attached to it.

With this being the case, I think we have a situation where if we do drop further, the 1.12 level would be the next serious target, and really, I don’t see much on this chart that keeps that from happening. It doesn’t mean we get there immediately, but I think in the next couple of weeks it will not be stunning to see that.

GBP/USD Technical Analysis

The British pound initially tried to recover on Thursday, but has given back quite a bit of the gains. We’re hanging around the 1.3150 level, an area that’s been important in the past, but there is a cluster of trading just below here that extends all the way down to the 1.30 level. I think that could be your target, but the British pound has been quite a bit more resilient than the Euro, and it should be, interest rate in the UK is stronger, but at the same time, it is a stronger economy, so it all ties together quite nicely.

I think 1.30 is the attempted target, but it’s going to be more or less a grind. Rallies would get sold into, at least until we can break above the 1.3250 level. For what it’s worth, in the last 24 hours, we have kicked off the so-called death cross when the 50-day EMA breaks below the 200-day EMA, a very negative sign indeed.

USD/NOK Technical Analysis

Finally, the US dollar has broken above a resistance barrier against the Norwegian krone, and short-term pullbacks, I do think, end up being buying opportunities. I would not be surprised at all to see this pair go looking to the 10.00 level, possibly even 10.10. The 200-day EMA currently sits at the 9.71 level, and with the Norwegian krone being a currency that’s heavily influenced by crude oil, that’s probably part of what’s going on here as well.

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