Dollar Gains Strength Ahead of Jackson Hole Speeches

The US dollar is gaining strength ahead of the Jackson Hole speeches, with EUR/USD, USD/JPY, and USD/CAD all favoring the dollar.

EUR/USD has been sliding from its highs at 1.1700 to the 200-period EMA, with the 50-period EMA crossing down just above 1.1657. The euro is drifting lower, but traders are not comfortable shorting the dollar, making it a good opportunity to target the 1.16 level as a short-term trade.

USD/JPY continues to grind higher along a rising trendline, holding above both the 50- and 200-period EMAs with 160.000 as the next resistance. The author likes buying dips in this pair, which has been collecting swap at the end of every day for months.

USD/CAD has rallied from the 1.3750 area, sitting above both moving averages with resistance at 1.3950 and 1.4000 overhead. The author expects a pullback in this pair and would be willing to buy it on a bounce near the 1.3830 area.