EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Somewhat Soft in Early Trading

EUR/USD Technical Analysis

The euro did initially rally on Monday against the US dollar, but it is struggling again, just above the 1.04 level. At this point, it’ll be interesting to see whether or not the US dollar continues to strengthen. And I think with the jobs number coming out on Friday, that could also give us a situation where the US dollar strengthens quite drastically.

On the other hand, if we break above the 1.0450 level, then it’s possible that we could go looking to the 1.06 level, which is a major barrier and I think ultimately, it’s a big problem. That area, if we can break out above that, the trend might change. But as things stand right now, the euro still looks pretty anemic.

USD/JPY Technical Analysis

The US dollar did pierce the crucial 158 yen level, but it’s given those gains back. I think it’s probably only a matter of time before we continue to go higher, but we have some work to do. And again, I think part of this might be due to the fact that the non-farm payroll announcement comes out on Friday and traders don’t want to get too overexposed until we get beyond that, as we will then gauge a little bit more effectively the next actions by the Federal Reserve. There is support underneath near the 156.50 yen level, so I’ll be watching that closely. I think this is more or less consolidation with an upward squeeze waiting to happen.

AUD/USD Technical Analysis

The Australian dollar clawed back quite a bit of what it gave back late in the day from the previous session. And now it looks like it’s trying to do everything it can to get above the 0.63 level. I think the rubber meets the road at the 0.6350 level and it’ll be interesting to see if we can truly take that out. I do believe that you’re looking to short the Aussie dollar eventually, but let it bounce a bit. Let it give you a little bit of value when it comes to buying the US dollar. The 0.62 level underneath has been significant support multiple times, so if we were to break down below there, that opens up a move to 0.60 in this currency pair.

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