USD/CHF, USD/JPY and GBP/USD Forecast – US Dollar Continues to Fight Back

USD/CHF Technical Analysis

The US Dollar initially fell against the Swiss Franc but turned around to show signs of life. With that being said, the market is likely to continue to look like one that you’re buying dips, taking advantage of the interest rate differential as people will continue to jump into the Dollar assuming that we don’t have a major issue that has people running to safety.

The 50-day EMA is sitting at the 0.7828 level, and I think that will cause a bit of resistance. If we can clear there, then markets can start to re-enter the previous consolidation area between 0.79 and 0.81.

USD/JPY Technical Analysis

The US Dollar has fallen a bit against the Japanese Yen to kick off the trading session but turned around to show signs of life. With that being the case, I think you have to look at this as a market that will continue to see a lot of volatility, but the interest rate differential continues to have quite a bit of influence here.

If we can break above the highs of the Friday session, I think it opens up the possibility of a move to the 158-yen level. If we do fall from here, I’d be watching the 152-yen area; it’s served as a pretty good floor so far.

GBP/USD Technical Analysis

The British Pound initially rallied a bit during the trading session here on Monday, breaking above the 50-day EMA only to turn around and fall apart. If the market were to break down below the lows of Thursday and Friday, meaning 1.3433, then we see the market drop down to the 200-day EMA.

If we can break above the highs of today, we could send this market to the 1.36 level. But as things stand right now, it looks like we’re just bouncing around 1.35 with the US Dollar seemingly refusing to budge and I think you still have a situation where you are fading short-term rallies that show signs of exhaustion.

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