EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Gives Up Strength

EUR/USD Technical Analysis

The euro initially rallied during the trading session here on Thursday, but we are starting to see a little bit of trouble at that 1.08 level. So, it’ll be interesting to see if we can continue to rally from here. I think the 1.08 level is something worth watching very closely. So, with this being said, the market is likely to continue to see a lot of volatility, but what is worth noting is that there is a lot of fear out there right now, and that obviously has a major influence on the US dollar, the US dollar of course being the safety currency here.

If we can break above the 1.0850 level, then it’s likely that we will go looking to the 1.09 level followed by the 1.0950 level. A breakdown below the lows of the day would be ugly, as it could send this market down to 1.06.

USD/JPY Technical Analysis

The US dollar initially fell against the Japanese yen but has turned around to show signs of life again. And it looks to me as if we are in the process of trying to break above the 50 day EMA. If and when we do break above there, then the 200 day EMA gets targeted next, followed by the 152 yen level. The 150 yen level seems to be offering a bit of support at the moment, so I think you’ve got a situation where traders are going to be looking at this through the prism of a market that has a short-term floor in it, so it is very important to watch that level.

AUD/USD Technical Analysis

The Australian dollar initially pulled back a bit during the trading session here on Thursday, but then turned around to reach towards the 50 day EMA again. That, of course, is an indicator that a lot of people will be watching because it is well known as a trend indicator. That being said, I think this is a market that is basically in the middle of the overall range between 0.62 and 0.64. As we are dead in the middle of that, I think we’re basically at fair value, so there isn’t a whole lot to do with the Australian dollar.

For a look at all of today’s economic events, check out our economic calendar.