EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Mixed After NFP

EUR/USD Technical Analysis

The euro has been back and forth after the jobs report in America was released with a number 143.000 jobs added, which was lower than anticipated, but the unemployment rate went down and the hourly earnings were also a main problem, at least from the hawkish side. So it does look like the US economy is still growing pretty significantly, despite the fact that the top line number was a bit noisy. With this, I still like the idea of fading the Euro on short-term rallies, and it would not surprise me at all to see 1.05 being a bit of a ceiling.

USD/JPY Technical Analysis

The US dollar has rallied a bit against the Japanese yen during the trading session as well, but it looks like it also has a bit of resistance above. Quite frankly, this is a market that I am going to watch how it reacts to this candlestick that we are forming right now, whether or not we could break higher or lower, because I think we are at a major point of inflection at the moment, and that’s something that really needs to be paid close attention to. With this, I’m neutral, but willing to be a buyer on a move to the upside. If we break down from here, I probably would buy the Japanese yen against other currencies, not the US dollar.

AUD/USD Technical Analysis

The Australian dollar continues to chop back and forth, and I think at this point in time, we are just going to be watching the 0.6350 level to see whether or not it holds as resistance. So far it has, and now it just looks like it doesn’t know what to do with itself. We are in a bit of a consolidation area, which could be a basing pattern, but we need to break above the 0.64 level to actually confirm that.

As things stand right now, I think we go back and forth with the market just trying to sort out what’s going on in China as well, because remember, the Australian dollar is highly sensitive to that economy and is in fact used as a proxy by a lot of forex traders.

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