USD/CAD, USD/CHF and USD/JPY Forecasts – US Dollar Mixed to End the Week

USD/CAD Technical Analysis

The US dollar has rallied a bit against the Canadian dollar again on Friday as we are bouncing from the 200-day EMA. Ultimately, this is a market that I think probably continues to see a lot of noisy behavior, but over the longer term, it would not surprise me at all to see this one try to break to even higher levels.

Quite frankly, this is a market that continues to focus on the higher-than-usual interest rates in the United States, while the Canadian economy looks like it’s got some issues right now. With that being the case, I do favor buying dips and I do think it’s probably only a matter of time before we get to the 1.3950 level.

USD/CHF Technical Analysis

The US dollar has fallen fairly significantly against the Swiss franc. But again, I think you’ve got a situation where traders are testing support at the 0.78 level to see if it holds. I think given enough time, we probably see the interest rate differential come back into play that does, of course, favor the United States dollar.

And if we get a little bit more risk appetite out there, I think that would make the difference. Ultimately, I am bullish on this pair. We are in a range, we’re getting close to the bottom of it, I’m looking for a bounce.

USD/JPY Technical Analysis

The US dollar has fallen after initially trying to rally against the Japanese yen. That being said, it still looks pretty bullish overall. Again, I think this is more of a buy on the dip scenario, much like it is against the Swiss franc.

The 160-yen level is an area that traders will be watching very closely. It’s an area that just above we saw the Bank of Japan intervene. Whether or not they do it again remains to be seen, but it certainly looks like we will continue to challenge that. I like buying dips.

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