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

EUR/USD Technical Analysis

The US dollar continues to see a lot of strength, as the market continues to see buyers taking the euro plunged during the early hours of Thursday again to reach the 1.05 level. The 1.05 level is an area where traders have looked multiple times for support. So, the fact that we have bounced from here is not a huge surprise. We are definitely oversold at this point in time.

So, I think a bounce makes sense, but in all fairness, I said that yesterday. So, with that being said, the last thing I want to do is chase this trade to the downside because quite frankly, there’s plenty of other places to buy the US dollar. A bounce from here does again make sense, but more likely than not, we’ll only offer a selling opportunity once we get to the 1.06 level or maybe even the 1.0750 level.

USD/JPY Technical Analysis

The US dollar continues to plow higher against the Japanese yen as we are approaching the 156 yen.

By breaking above the 155 yen level, we had cleared quite a bit of significant selling pressure. So ultimately, I think we’ve got a scenario where the interest rate differential continues to favor the greenback. I do think that given enough time; we probably go looking to the 159 yen level. Short-term pullbacks should see plenty of support at that 155 yen level, as well as 154 yen.

AUD/USD Technical Analysis

The Australian dollar has fallen a bit during the trading session to dip below the 0.65 handle. That being said, there is a lot of noise just below that could offer a bit of support still. If we can turn around and break above the 0.65 level, it’s likely that a short-term buying opportunity then.

I think at that point, you’re looking at moving averages such as the 50 day EMA or 200 day EMA, which are both near the 0.6650 level. If we break down from here, then we could open up and move down to the 0.6350 level where we did see a lot of support previously. Keep in mind that the Australian dollar is highly sensitive to commodities and overall growth. So that is something worth paying attention to.

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