USD/CAD, USD/CHF and USD/JPY Forecasts – US Dollar Drifting on Tuesday

USD/CAD Technical Analysis

The US dollar has rallied a little bit to the upside against the Canadian dollar during the trading session, but it’s also worth noting that we are facing a little bit of hesitation at the 1.3850 level. Short-term pullbacks I think may make a certain amount of sense, but the 200-day EMA underneath should offer a bit of a floor. I do still believe in the US dollar over the Canadian dollar, but interest rates have drifted a little bit lower from the start of the day. It’s probably going to cause a little hesitation.

USD/CHF Technical Analysis

The US dollar against the Swiss franc is of course pulling back a little bit as well, but it also sees some support at the 50-day EMA. So, I do like the idea of buying this pair, but we’ll just have to wait and see whether or not we buy it closer to the 0.78 level on a bounce, or if we can break above the 0.79 level. Either way, a little bit of patience probably goes a long way.

USD/JPY Technical Analysis

The US dollar continues to grind higher against the Japanese yen but be aware that the 160-yen level is an area that the Bank of Japan intervened at previously and it could cause a little bit of the same type of action. We’ll just have to wait and see. So far, the Japanese have been fairly quiet. So only time will tell.

That being said, if we do get some type of pullback, I am willing to buy dips on the right-hand side of the V to make sure that I am following momentum re-entering the market. I have no interest in selling this pair. The interest rate differential, despite the fact that the interest rates fell in America, continue to favor the US dollar by quite a wide margin.

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