GBP/USD, USD/CHF and USD/CAD Forecast – US Dollar Continues to Look for Buyers

GBP/USD Technical Analysis

The British pound has rallied ever so slightly during the Good Friday trading session in what of course would have been thin conditions, but it is an extension of the overextended condition that we have been in. I think at this point in time, we could very well see a market that is possibly going to go sideways, at least in the short term, in order to pick up more buyers. After all, we are overbought at this point, and the market, of course, has been all over the place.

One has to think that it would only take a tweet or announcement to turn this thing right back around 200 pips. That seems to be the nature of markets right now in general. I think the best case scenario right now is that we go sideways, and we get more of a stable market because quite frankly, I think that’s what everybody wants anyways.

USD/CHF Technical Analysis

The US dollar has pulled back just a bit against the Swiss franc during the Good Friday session, but I think you are starting to see the 0.81 level as a potential major support level. If we can break above the 0.8250 level, then I think we could open up the possibility of a move to the 0.84 level. A breakdown below the 0.81 level opens up the possibility of 0.80, but I think at that point, the Swiss National Bank starts to pay a little bit of attention to the strength of the Franc, assuming that the Euro falls against the Frank as well. After all, the Swiss National Bank has no qualms about intervening if the franc gets too strong in general.

USD/CAD Technical Analysis

The US dollar has bounced slightly against the Canadian dollar as we are hanging around the crucial 1.3850 level. The 1.3850 level is an area that has been important multiple times in the past, as it was an area that was like a brick wall. So, the market memory is starting to come into the picture, and if we were to turn around and break above the 1.40 level, then perhaps the US dollar could go higher. But as things stand right now, I’m starting to hear calls of the US dollar no longer being the world’s reserve currency, and that’s almost a perfect technical sign to go in the other direction.

We don’t have that yet. We don’t have momentum. But trade deals could put the focus on everything else in the world right now, which of course is a bit of a mixed bag of optimism and pessimism that could drive money back into the U.S. Yields in America are certainly much higher than Canada or many of these other currencies. So eventually that might come into the picture as well as soon as we get some deals done.

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