Today, we had soft inflation data, which was expected. On a positive note, building permits and housing starts for July both came in better than June’s readings, and beat their forecasts. The US Dollar rallied across the board. Let’s take a look at USD/JPY, USD/CAD, and USD/CHF.
The USD/JPY pair looks to be in bullish continuation, poised to test the 103 handle, with upside risk toward the 103.75-104 highs from March-April. The USD/CAD had formed a double top but has maintained the bullish trend and momentum since then. After the US data, it looks ready for bullish continuation toward not only the 1.0986 high on the month, but the 1.1053 high from April. Finally, the USD/CHF is also signaling bullish continuation after a triple top. We can expect upside toward the 0.9115 high on the month, and the 0.9156 high on the year.
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