EUR/USD, USD/CAD and USD/CHF Forecasts – US Dollar Rises with Higher Rates in the US

EUR/USD Technical Analysis

The Euro fell a bit during the trading session on Friday as we ended up testing the 1.15 level. The 1.15 level is a large, round, psychologically significant figure that a lot of people will be watching, opening up the possibility of a move down to the 1.14 level.

I don’t have any interest in buying the Euro, but I do recognize that we are in an area where we could get a little bit of a bounce. The 200-day EMA sits just below the 1.16 level and that is an area that I think continues to be a bit of a barrier as interest rates in America continue to climb.

USD/CAD Technical Analysis

The US dollar initially pulled back against the Canadian dollar during the session on Friday, but then rallied again as rates started to shoot higher. Keep in mind that the Canadian dollar is being cushioned a little bit by higher oil pricing, but I think more likely than not, what we’re looking at is a market that is trying to get to the 1.39 level, which is right in the middle of a cluster from January.

This is a market that favors US dollar interest rates, and therefore, the swap is something that you’ve been getting to the upside. We’re well above the 200-day EMA, so in the short term, pullbacks probably end up being buying opportunities.

USD/CHF Technical Analysis

The US dollar is rapidly approaching the 0.80 level against the Swiss franc, an area that has been important multiple times. It’s a large, round, psychologically significant figure, and it is an area that is now attracting the 200-day EMA.

Keep in mind that the Swiss National Bank has threatened intervention if the Swiss franc strengthens too much and with the interest rate differential being so massive, it does make sense that the US dollar continues to strengthen.

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