EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar a Bit Mixed in Early Trading

EUR/USD Technical Analysis

The euro fell a bit during the early hours on Thursday as traders are starting to get back to work but it is starting to turn around as well. So when I look across the board at the US dollar, it seems to be a little bit of a mixed picture, but also keep in mind, liquidity is a major problem right now. So, with that being said, I do think that the 1.03 level continues to be important in the Euro and I do think it ends up being a bit of a floor.

A bounce from here would make perfect sense, just simply due to running out of momentum. But if we do get that bounce, I’m more than willing to start shorting it. Quite frankly, when you look across the Forex world, the US dollar is by far the biggest winner at the moment. And I don’t think that changes easily.

USD/JPY Technical Analysis

The US dollar initially fell against the Japanese yen but has turned around the show signs of life again, as it looks like we are trying to at least think about going positive as I record this video. If we break higher, the 158 level is an area that I think a lot of people will be paying close attention to as it has been resistance a couple of times in the past and most certainly here recently. The 155 yen level underneath I think continues to be support and the 50 day EMA racing toward it obviously helps that as well.

AUD/USD Technical Analysis

The Australian dollar has bounced a bit after closing Tuesday below the 0.62 level. It now looks like it’s hanging on by a thread. And if we can bounce back above there, then I think you’ve got a situation where traders will start to fade signs of exhaustion. That’s literally what I’m hoping and waiting to do. That being said, again, liquidity is an issue. So, I don’t know if this is the big move lower in the Aussie.

One thing that people will be paying attention to later this month obviously will be the jobs number in America and if that continues to be very strong, it’s very difficult to imagine that the Aussie’s going to fare well against the Greenback. The 0.6350 level above, is your ceiling. It’s not until we break about there that I would consider going long of this pair. On a breakdown, we could go as low as 0.60 pretty quickly.

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