USD/CAD, USD/CHF and GBP/USD Forecasts – US Dollar on the Back Foot

USD/CAD Technical Analysis

The US dollar has found itself on the back foot during early trading on Friday against the Canadian dollar, as we look like we are going to continue to see a drop towards significant support, which is an area between 1.35 and 1.3550. If the market were to reach this little area and bounce, it could end up being a nice buying opportunity, especially if interest rates start to rise again. If they start to melt down, that could send the US dollar much lower, so I’ll be watching in this little trigger area to perhaps get involved.

USD/CHF Technical Analysis

The US dollar has fallen against the Swiss franc during trading as well, but it is approaching an area that could be a bit of a support region near the 0.7775 level, and I think, given enough time, the market is probably going to try to turn things around. The interest rate differential alone should make that happen, but we’ll just have to wait and see. If we were to drop from here, then the market I think goes looking to the 0.77 level. To the upside, I think the 0.79 level eventually gets targeted.

GBP/USD Technical Analysis

The British pound has broken out against the US dollar and now we’re in a new regime. I think we will probably go looking to the 1.37 level given enough time after the action this week. We’ll just have to wait and see how that plays out. Clearly, traders think that the Bank of England is going to stay tight for longer than originally anticipated and that should reflect a higher valued British pound.

Short-term pullbacks, I’ll be looking to see if there’s support near the 1.3550 level, although we’ve sliced through it enough times that may not be the case going forward. Ultimately, this is a market that continues, I think, to look to the upside.

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