EUR/USD, USD/JPY and AUD/USD Forecast – Dollar Showing Strength Again in Early Hours

EUR/USD Technical Analysis

The euro has been somewhat quiet, although slightly negative in the early hours of Monday as we continue to hang around the 1.05 level. The 1.05 level of course is a fairly significant round number that has been important multiple times in the past. So, it’s not too overly surprising to see the market stall here. We do have a shortened week, so therefore we need to be very cautious in America, at least due to Thanksgiving, but really at this point in time, it’ll be interesting to see how this plays out.

It does look like it’s at least trying to bounce a little bit as we gapped at the beginning of the session. Whether or not we can rally for anything significant remains to be seen. Until proven otherwise though, you would have to assume that a bounce here probably ends up into an exhaustion candle that you could sell into.

USD/JPY Technical Analysis

The US dollar did initially fall against the Japanese yen but has turned things around during Asian and European trading as we head towards the crucial 155 yen level yet again. Breaking above the 155 yen level would open up the possibility of a move to the 158 yen level, followed by 160 yen. Underneath, we have plenty of support levels at the 153 level and then the 151.50 level, where the 50-day EMA currently resides.

AUD/USD Technical Analysis

The Australian dollar essentially gapped higher and then just fell from there. At this point, the market is basically unchanged as we head into New York, and we are hanging around the 0.65 level. If we break down from here, we could go as low as 0.64 and still be in the same support range, anything below there, things get ugly.

Rallies at this point will have to deal with the 0.6550 level and then again have to deal with resistance near the 0.66 level, especially now that the 50-day EMA is hanging out in that area. Interest rates in the bond markets of America continue to climb from time to time, and that of course has put more upward pressure on the greenback. Furthermore, the Australian economy itself is highly levered to China, which seems like might be struggling a bit these days.