EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to See Choppiness Early Thursday

EUR/USD Technical Analysis

The euro initially did try to rally against the US dollar but gave up its gains as the European Central Bank has cut rates. Furthermore, it looks like they might end up being dovish as time goes along and now we will focus on the strength of the US dollar. I do think eventually we could break down and short term rallies continue to be selling opportunities. At this point, though, it’s just simply grinding back and forth and I don’t really know what’s going to break it loose. But I would suspect that the euro is going to have a really hard time.

USD/JPY Technical Analysis

The US dollar pulled back just a bit during the early hours on Thursday, but we still are hanging around the 152 yen level and we have the 50 day EMA underneath there. The 50 day EMA of course is an area that a lot of people have probably some interest in and then after that we have the 200 day EMA followed by the 150 yen level. So, I think there are plenty of areas underneath that should offer support, and I do think that eventually we will get a bit of a bounce.

AUD/USD Technical Analysis

The Australian dollar did rally pretty significantly in the early hours on Thursday, but has given up about half of the gains, as I think we’ve got more of this fade the rally type of behavior, and I don’t know when that ends, because quite frankly the US economy is humming right along.

It’s much stronger than most others, and of course there are plenty of geopolitical issues out there that would more likely than not have people preferring the greenback over many other currencies anyways. At this point, if we break down below the 0.63 level, the bottom will fall out of this pair.

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