Forex Forecasts – Dollar Weakness Drives EUR/USD, USD/CAD, and GBP/USD Setups

EUR/USD

In the short-term forex markets, the euro has risen a bit in early trading on Monday. It is starting to pull back just a touch, but it looks supported to me.

Now, I’m not massively bullish this market, but I recognize that we are starting to see some softness in the U.S. dollar. I’ll be watching right around 1.1550 for signs of support to take advantage of, as we’ve had a nice bottoming pattern from a longer-term consolidation area.

I recognize that right around 1.1650 there could be some resistance, so short-term bounce play might be what I’m looking to do here, all things being equal.

USD/CAD

The U.S. dollar has fallen against the Canadian dollar. I am particularly interested in the 1.39 level on any bounce for signs of exhaustion, assuming that the U.S. dollar continues to lose strength.

There are reports out there in the media right now about a potential ceasefire between the United States and Iran. We’ll see what influence that has on the market. There was an initial jolt of risk appetite coming back into the market that seems to have been abated.

GBP/USD

The British pound against the U.S. dollar is another one I’m watching. On the hourly chart, we’re forming a rising wedge. A pullback toward the 1.3525 area might be interesting for value. It is also the measured move of that pattern if it does break.

The British pound has been one of the better performers against the dollar for a while, so when I find myself in a situation where I’d rather buy the dollar, I actually avoid this pair. But selling the dollar, it has performed fairly well in comparison to some of its contemporaries.

We did just recently break a swing high at the 1.3550 level, so that would be a retest, something worth watching. We’ll see. If I get that opportunity to buy it a little cheaper, I might just do so.