Short-term Forex Movements Point to a Softening US Dollar early on Thursday

USD/CAD Technical Analysis

The US dollar has pulled back just a bit against the Canadian dollar after trying to rally, but all things being equal, this is a market that is going to be one that I believe will be watching the PPI numbers coming out of the United States, allowing some type of movement later in the day.

If we break above the 1.3960 level, I would become more interested in buying the dollar against the Canadian dollar. I’m not quite sold on shorting this pair quite yet. This is a market that I still favor the upside, from a longer-term perspective.

GBP/USD Technical Analysis

The British pound has dipped and then recovered against the US dollar right at the support level that we had talked about a couple of days ago. If we can clear the 1.35 level with perhaps a one-hour close, then I might be interested in buying this pair.

The British pound is a little bit different than most other currencies against the USA because of the high interest rates in the United Kingdom. I do prefer to only buy this pair, but I need to see that close first.

NZD/USD Technical Analysis

The New Zealand dollar has recovered quite nicely earlier in the session after initially falling, but I like the idea of fading if we get anywhere near the 0.5860 level.

Signs of exhaustion have me getting short on that PPI number; if it comes out hot, it might send this thing lower. Below 0.5830, I become interested in shorting. This would be a continuation of the previous bearish moves that we had seen. The New Zealand dollar is also very sensitive to all things Asia, and the energy shock that could come from the closed Strait of Hormuz.