The US dollar could rebound next week as fresh data sparks taper talk and worries about China emerge. The early barometer will be USD/JPY as it resolves a wedge patter.
USD/JPY daily
Another place to watch is USD/CHF, which is trading at a one month low today. SocGen reports that foreign banks are heavily long CHF against the dollar and euro. They also see rising odds of an upside breakout in EUR/CHF — something to consider with the pair near the lower range of the recent 1.2330-1.2410 range.
