EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to See Interest

EUR/USD Technical Analysis

The euro initially did try to rally a little bit during the trading session on Thursday but has given back those gains to continue to look a little bit weak. With that being said, the market is likely to continue to look at the 50-day EMA as potential resistance, and then again at the 1.05 level. Because of this, I think you have to assume that the market is just simply trying to digest these gains and sort out where to go next.

The trend is down, so one would have to assume that it is probably only a matter of time before we go falling towards the 1.03 level, possibly the 1.02 level. The market continues to be very noisy overall, but really with higher interest rates in the United States and perhaps more importantly, a much stronger economy in the United States than the European Union. This is a market that should drop sooner rather than later.

USD/JPY Technical Analysis

The US dollar continues to bounce around against the Japanese yen, but we do have the Bank of Japan on Friday and because of that, I am a bit cautious here. I think short-term pullbacks probably end up being buying opportunities with the 155 yen level as support. Ultimately, the market will be looking at the 158 yen level as a short-term ceiling. If we can break above there, then we could go looking to the 160 yen level.

AUD/USD Technical Analysis

The Australian dollar looks a lot like the euro as we just simply don’t have enough momentum to continue going higher. With that being said, market participants continue to see the 50-day EMA above as resistance right along with the 0.6350 level. A fall to the 0.62 level would make quite a bit of sense, and quite frankly, as long as the Aussie is tied to China, and China is going to be a bit of an anchor. The stochastic oscillator is crossing over right at the overbought line, so if you believe in the consolidation that we’ve had over the last couple of weeks, that could be a technical signal as well.

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