EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Claws Back Some Losses on Short Day

EUR/USD Technical Analysis

The euro has slipped a bit in the early hours on Thursday during Asian and European trading, but it is worth keeping in mind that it is Thanksgiving in the United States. So, there will not have been any real liquidity once we have got the New York session.

The 1.05 level underneath is an area that had previously been support and now it looks like it’s trying to hold again. If we can break above the 1.06 level, then we could open up a bigger move to the 1.0750 level. In the short term though, it looks like we are going to consolidate more than anything else, and so we try to sort out whether or not this is going to be a floor.

USD/JPY Technical Analysis

The US dollar has bounced just a bit against the Japanese yen during the trading session, as it looks like the 200 day EMA did in fact try to hold as support. It is worth noting that the 200 day EMA sits just above the 150 yen level. At this point, if we can continue to bounce, we could go as high as the 155 yen level, which is an area that’s been important multiple times as well.

Keep in mind that the interest rate differential continues to favor the US dollar, and I think that will be the case going forward. If we were to break down below the 150 yen level, then things could slip a bit further, but right now it looks like we are at least trying to put up a bit of a fight.

AUD/USD Technical Analysis

The Australian dollar has gone back and forth against the United States dollar at the 0.65 level. This is the bottom of a larger consolidation range. And now it looks like we are trying to turn around and break above the 0.6550 level clearing that opens up the possibility of a move to the 0.6650 level. If we break down below the 0.6433 level, then we could drop down to the 0.6350 level.

Keep in mind that the Australian dollar tends to move on risk appetite. Right now, risk appetite seems to be a little bit concerning, but furthermore, you have to keep in mind that the interest rates in America continue to elevate the US dollar anyway.

For a look at all of today’s economic events, check out our economic calendar.