EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Trying to Fight Back on Thursday

EUR/USD Technical Analysis

The euro has pulled back just a bit during the early hours on Thursday, as it looks like the 1.09 level will, in fact, end up offering resistance. So that being said, I think you’ve got a situation where we’re probably going to get that pullback that I’ve been talking about for a few days. So, the question now is whether or not the 1.08 level will hold as support.

If it does not, then we could drop to the 200 day EMA. After all, the market has gotten way ahead of itself and I think that would make a certain amount of sense. Furthermore, you also have to keep in mind that the yields in Germany spiking eventually become a problem for the Europeans.

USD/JPY Technical Analysis

The US dollar has initially fallen against the Japanese yen, but it does look like it’s trying to show some form of resiliency against it. So, I’ll be watching this one more than anything else. I think we could be in the midst of a bit of a basing pattern, we’ll just have to wait and see, and at this point in time, I would remain fairly neutral, although longer term, I’m still bullish.

I do think that eventually this thing turns around and continues its overall trajectory to the upside. You can see that we recently made a higher high and a lower low. So, this generally means that you’re going to see a lot of sideways chop and volatility.

AUD/USD Technical Analysis

The Australian dollar fell fairly hard during the session after initially trying to take off to the upside, but it still remains basically in the center of this 200 pip range that we’ve been in for some time. So, with that, you have to assume that it is basically fair value. If we could break above the 0.64 level, we’re going to have to deal with the 200 day EMA.

A breakdown below the 0.62 level could send this market lower. But really at this point in time, I think we’re just going to sit in this holding pattern, making the Australian dollar more or less the domain of short-term range-bound trading.

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