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

EUR/USD Technical Analysis

The euro has pulled back ever so slightly during the trading session on Thursday as we continue to see a lot of noisy behavior. Quite frankly, this is a market that I think is a little overdone. So, one of two things could very well be getting ready to happen. We could get a little bit of a pullback here where people try to catch their breath before driving the Euro higher against the US dollar, or we may just have to go sideways for a while.

Either way, I think we are in a situation where we are going to have to probably digest some of the massive gains that we have seen over the last couple of weeks. And with that, I remain somewhat non-committal at this point. I think you’re probably going to see a lot of noise and chop, and it’s probably worth noting that right now, another thing that comes into the picture is that on Friday, it will be Good Friday and liquidity will dry up.

USD/JPY Technical Analysis

The US dollar has recovered slightly against the Japanese yen during the early hours. But quite frankly, I think you have to look at this through the prism of a market that is just simply oversold, much like the euro has been overbought. And I think the bounce makes a certain amount of sense. Over the longer term, I anticipate that you have to pay close attention to the 142 yen level because if we break significantly below there, then it’s likely that we would see the market drop to the 140 yen level.

The 145 yen level above, I think, is an area that a lot of people will be watching as it is a large round psychologically significant figure and an area that has been important a couple of times in the past. Anything above there, the dollar probably catches a serious bid.

AUD/USD Technical Analysis

The Australian dollar is overbought against the US dollar and is threatening the 0.64 level, an area that has been a major resistance barrier multiple times in the past and is also backed up by the 200-day EMA. So, I do think you have a scenario where traders are going to be looking at this as a potential short opportunity or maybe just an overbought extension that needs to at least grind away some of this excess froth.

As we head towards Good Friday, momentum will probably drop, liquidity will almost certainly drop. So therefore, I don’t necessarily think that we have a huge buying opportunity. However, if we get a daily close well above the 0.64 level, you have to think that the trend has changed from a longer term standpoint.

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