EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Trying to Form Momentum

EUR/USD Technical Analysis

The Euro has dropped a little bit in the early hours of Thursday, but we are hanging around and trying to figure out whether or not the 50 day EMA comes into the picture. It is entirely possible that GDP numbers move the pair during the day, but really at this point, I think the most important thing to pay close attention to is the fact that we have a lot of noise above the 1.05 level that extends all the way to the 1.06 level above. If we can break above 1.06 and ostensibly the 200 day EMA, then the euro has a real shot at taking off to the upside. Otherwise, we’re going to stay in the previous consolidation area.

USD/JPY Technical Analysis

The US dollar has rallied significantly against the Japanese yen but also has found a certain amount of resistance at the 150 yen level. If we can break above that area, then I would pay close attention to the Friday candlestick from last week, because if we can break above the top of that inverted hammer, it’s one of my favorite signals to start buying.

All things being equal though, it looks like we are in the midst of a bottoming pattern and perhaps trying to find a range now that the Bank of Japan is likely to raise rates later in the year while the Federal Reserve might cut slightly. At least, that’s what the markets are betting on. So, we’re trying to find the bottom. I think we’re still in that process.

AUD/USD Technical Analysis

The Australian dollar has drifted a little bit lower during the early hours, but it’s also hanging around the crucial 0.63 level, an area that’s been important in the past as well. While this has been a fairly sharp pullback, the reality is we could be finding buyers in this area as well.

This is a lot like the US dollar against the Japanese yen in the sense that I might sit on the sidelines and wait to see what the next impulsive move is before I start putting money to work. We are somewhat in no man’s land at the moment.

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