EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Still Looks Strong Overall

EUR/USD Technical Analysis

The euro fell again during the early hours on Thursday as market participants continued to look at the 1.05 level underneath as major support. If the market were to break down below the 1.05 level, it could open up a much steeper fall, and I think probably US dollar strengthening across the board, not just against the Euro. It is worth noting that we are at the bottom of a larger consolidation area and with the stochastic oscillator being in the oversold condition, one would think that range bound traders are paying close attention, but we also are on the precipice of having the whole thing fall apart.

USD/JPY Technical Analysis

Over in the US dollar against the Japanese yen, we have seen a little bit of a pullback, perhaps a bit of a safety play due to the escalations in Ukraine. So, we’ll see how that plays out, but at this juncture, I think you’ve got a scenario where traders are looking at this dip more likely than not as a buying opportunity. After all, the market continues to look at 155 yen as a bit of a magnet for price.

And if we can break above there, and perhaps even above 157 yen, then the market is likely to continue going much higher, perhaps to the 162 yen level. Short-term pullbacks at this point in time open up the possibility of a move down to the 50-day EMA, which is right around the 151 yen level. Regardless, the interest rate differential continues to favor this market going higher.

AUD/USD Technical Analysis

The Australian dollar has rallied a little bit during the early hours on Thursday, but we still look very sluggish to say the least. If this is good as it gets, it’s not going to be very good. The Australian dollar of course is highly sensitive to Asia and commodities so pay close attention to those. If the market were to break to the upside the 0.66 level could be targeted. I wouldn’t hold my breath though, we are still well within the previous range. So, I think at this point in time, it remains a fade the rally type of situation here in the Aussie. The one thing that does help the Australian dollar though, is that the RBA during its last meeting chose to keep interest rates steady.