EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Rallies in the Early Hours of Thursday

EUR/USD Technical Analysis

The euro has fallen a bit during the trading session here on Thursday in the early hours, but really at this point in time, I think we are still very much in a consolidation range, and I expect that we will probably see quite a bit of support underneath that extends down to 1.08 or so. If we were to break down below that level, then it kicks off a deeper correction, but as things stand right now, I suspect that we could see a little bit of a bounce here and just simply go sideways for a while.

USD/JPY Technical Analysis

The US dollar has drifted a little bit lower against the Japanese yen but is trying to bounce as well. Again, I think this is a range-bound currency pair. And now that we’ve gotten the Federal Reserve and the Bank of Japan out of the way, there probably isn’t a whole lot to move the markets at the moment. The 150 yen level above is a significant barrier, so pay close attention to it. And if we were to break above there, I think that would be a really strong sign for the greenback. On the other hand, if we were to break down below the 147 yen level, then I think we start to drop pretty significantly from there, perhaps aiming for the 145 yen level.

AUD/USD Technical Analysis

The Australian dollar has plummeted during the trading session and has left no doubt that we are still in a somewhat negative type of market. With that being said, I think you’ve got a situation where traders are going to continue to look at this through the prism of a market that is linked to China and global trade. And therefore, you are going to continue to see the Australian dollar suffer.

Now having said that, I don’t necessarily think that we are going to break down from here. I just think it’s likely that the Aussie dollar will continue to see a lot of volatility as we bounce around between the 0.62 level on the bottom and the 0.64 level on the top.

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