EUR/USD, USD/JPY and USD/CAD Favor Dollar Ahead of Jackson Hole

EUR/USD Technical Analysis

The euro has drifted a little bit lower, and as we head towards the Jackson Hole speeches, especially Kevin Warsh’s speech on Friday, it looks as if traders aren’t comfortable shorting the dollar. Because of this, I’ll be looking to short this market.

I am looking at the 1.1650 level as resistance, though. I’m going to try to target the 1.16 level as short-term trade, and on Friday, I will probably leave this pair alone because it could be very lively due to those speeches coming out of Jackson Hole. But right now, I’m willing to play pullbacks going forward.

USD/JPY Technical Analysis

The US dollar against the Japanese yen is a pair that I continue to look to the upside, although we are getting a little stretched at this point. I’d like to see a pullback toward the 159.25 level for an opportunity to get long again. This is a bullish run, despite what the Bank of Japan wants.

I do like buying dips. I have a longer-term position in that has been collecting swap at the end of every day for months, so full disclosure, I’m already long in this pair. I’ll look to add on dips. This is a pair that I have no intention of shorting anytime soon.

USD/CAD Technical Analysis

The US dollar against Canadian dollar, I think’s getting a little overdone. I’m expecting a pullback. I’d be willing to buy this on a pullback. I don’t want to short it. Somewhere near the 1.3830 area on a bounce. I don’t know if I’ll get that opportunity today, but I think the US dollar is still a currency I’d rather own in terms of Canadian dollars as well. This is a pair that I like the idea of being long in as long as trade tension continues.

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