USD/CHF, USD/JPY and USD/MXN Forecasts – US Dollar Rallies with Rates in America

USD/CHF Technical Analysis

The US dollar has rallied quite nicely against the Swiss franc to test the 0.79 level. The 0.79 level is an area that a lot of people will be watching closely, as it is a large, round, psychologically significant figure and an area where we have seen support previously. So, it should have pretty significant market memory and potential resistance there.

If we can break above there, then the market could go looking to the 200-day EMA. This, of course, is driven by the interest rates in America climbing. I think that continues to be a story. I like the idea of buying dips.

USD/JPY Technical Analysis

The US dollar initially fell against the Japanese yen but then turned around to show signs of life as the dollar strength against the Japanese yen continues to be a thing here. With that being the case, I believe that traders will continue to pay attention to the fact that you get paid at the end of every day.

You also have to keep in mind that the 160 yen level is a bit of a barrier that extends all the way to the 160.40 yen level. Anything above the 160.40 yen level opens up a longer-term buy and hold scenario, as it would be breaking above a swing high from 1990. Pullbacks continue to look interesting for buying opportunities, with the 50-day EMA and the 158 yen level both offering support.

USD/MXN Technical Analysis

The US dollar rallied against the Mexican peso, but we still have the 17.50 level above offering quite a bit of resistance. We have the 50-day EMA there as well. It will be interesting to see how this plays out, but I do think you have a situation where traders are looking to fade this sooner or later.

We have to have those US rates drop. The interest rate differential still favors Mexico by far, but it tightens up and that makes it less attractive, so keep that in mind. I am looking for a nice exhaustion candle to get involved. Right now, I just don’t have it.

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