EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Look Strong in Quiet Trading

EUR/USD Technical Analysis

The euro has moved very little against the US dollar in boxing day trading, but that’s not a huge surprise, as most people are more or less still dealing with the aftereffects of the Christmas holiday. So, I do think liquidity will end up being an issue, at least for the next several days. However, it is worth noting that the 1.03 level underneath is a major support level that a lot of people will be focusing on. And as long as we can stay above there, I think there’s at least a fighting chance to remain somewhat sideways here. The 1.06 level above is a massive resistance barrier and it now has the 50 day EMA backing it up. So, with all of that being said, I still think it’s a fade the rally type of market.

USD/JPY Technical Analysis

The US dollar against the Japanese yen continues to look strong as we are approaching the 158 yen level. The 158 yen level of course is an area that’s been important a couple of times in the past. So, it’s not a huge surprise to see it fight a little bit now. If we can break above the 158 yen level, then 159 yen gets targeted, followed by 161.50 yen. Short-term pullbacks at this point are still going to be thought of as potential buying opportunities, all the way down to at least the 155 yen level, which I see as significant support.

AUD/USD Technical Analysis

The Australian dollar initially tried to rally but gave up gains again as it just can’t get off of its back. It’s obvious to me that the Antipodes, the Aussie and the New Zealand dollar, are very weak at the moment, and I don’t know that this is going to change anytime soon. Any rally at this point in time would have to be looked at with serious suspicion, with the 0.6350 level above being a major resistance barrier.

If we break down below 0.62, then it’s possible that we could drop down to the 0.60 level, although I don’t think it’s a freefall, I think it’s more of a grind like we’ve seen over the last couple of months. Regardless, I have no interest in buying the Australian dollar.

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