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

EUR/USD Technical Analysis

The euro plummeted in the early hours of Monday as we continue to see US dollar strength across the board. Quite frankly, this is a market that is oversold. So, what I would be looking for is some type of short-term bounce that I can take advantage of and in fact, we did that a couple of times during the previous couple of weeks, and it worked out quite well.

Given enough time, I do believe that the euro will find its way down to the parity level, as the European economy is a bit of a mess and of course, interest rates in America continue to climb, as the Federal Reserve is not likely to cut rates anytime soon. And that of course has strengthened the US dollar against weaker currencies such as the Euro.

USD/JPY Technical Analysis

The US dollar has struggled a little bit against the Japanese yen during the trading session on Monday, but quite frankly, I think this comes down to the Japanese yen being a bit of a safety currency. So, with that being the case, I think this will undulate back and forth, but given enough time, I do think that the market will go looking to the upside to break above the 158 yen level again.

If we can get that to stick, then the market could very well go to the 160 yen level, just as a pullback will find support at the 156 yen level, followed by the 155 yen level, as it has the 50-day EMA approaching it. I have no interest in shorting this pair.

AUD/USD Technical Analysis

The Aussie dollar has been somewhat stagnant during the trading session, so that is a victory in and of itself as the Aussie dollar has been horrific as of late. One of the biggest factors, of course, will be the fact that the Chinese economy is slowing down as seen in the bond markets over there and of course, Australia is highly levered to China. With this, I still think we’re in the same boat, though. I think it’s going to be a lot like the euro where we get the occasional rally that you’re looking for signs of exhaustion to start selling again.

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