USD/CHF, USD/CAD and USD/JPY Forecast – US Dollar Mixed After War Starts

USD/CHF Technical Analysis

The U.S. dollar has bounced back quite significantly against the Swiss franc, which might catch some people off guard with the military actions in the Middle East. It would make a certain amount of sense for the Swiss franc to appreciate. I understand that the U.S. dollar is also a safety currency, but generally speaking, Switzerland is favored over the dollar in this particular type of environment.

I think what you have here is a market that’s just simply oversold and it’s trying to figure out what to do next. You can take a look and see that we are in some type of consolidation pattern, possibly even a triangle. So that’ll be interesting to see how that resolves, but as things stand right now, it looks like 0.76 is trying to offer a bottom. We have the 50-day EMA and the 0.79 level above, offering resistance and potential short-term targets for buyers.

USD/CAD Technical Analysis

The U.S. dollar has fallen against the Canadian dollar but that’s probably not as big of a surprise. We had been pulling back from pretty significant resistance to begin with, and then of course, if you have oil rising, although not a major factor in this particular pair, it does help the Canadian dollar in general.

Potential Targets and Floor Levels

I think it’s just too many things lined up at the same time for the dollar to just simply slice through the upside. I’m looking at bounces from pullbacks as potential buying opportunities with an eye on the 1.35 level as the floor and the 1.39 level above as a potential target in this pair.

USD/JPY Technical Analysis

The U.S. dollar somewhat surprisingly rallied against the Japanese yen as well. So, I think at this point in time the 158-yen level will be tested or something near it. And if we can break above there, 160 yen becomes the next thing, and anything above there breaks a 1990 high, and that really could spell a lot of problems for the yen.

Short-term pullbacks continue to be buying opportunities that I’m more than willing to take advantage of, especially near the 154-yen level and then again at the 152-yen level if we do, in fact, pull back that far.