USD/CAD, USD/JPY and USD/BRL Forecasts – US Dollar Rising Again as Rates Rise

USD/CAD Technical Analysis

The US dollar has drifted higher against the Canadian dollar during early trading on Thursday, but it does look like it’s running out of a little bit of steam here, so it’s very possible that the market may pull back towards the 200-day EMA, but I think ultimately short-term pullbacks end up being buying opportunities. The 200-day EMA sits just below the 1.38 level for reference.

USD/JPY Technical Analysis

The US dollar initially rallied against the Japanese yen during the early part of the session, but gave back gains to show signs of hesitation, and ultimately, this is a market that I think traders will continue to look at through the prism of buying dips to collect that interest rate differential. The Bank of Japan intervened near the 160-yen level, so keep that in mind as well, but even if we do pull back from here, somewhere near the 158.50-yen level, I think, opens up a massive floor.

USD/BRL Technical Analysis

The US dollar is rallying against the Brazilian real, and as such, it is breaking out above the top of a bullish pennant. At this point, it measures for a move to roughly 5.20, so we’ll have to see whether or not that happens. The interest rate differential does favor Brazil, so keep that in mind, but if we get more risk aversion, then it makes sense that the US dollar would be much more attractive than the Brazilian real. Either way, this is a market that you have to be very cautious with, but it does look like it’s going to start rallying.

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