AUD/USD, NZD/USD and USD/JPY Forecasts – US Dollar Continues to Grind Higher

AUD/USD Technical Analysis

The Australian dollar has fallen a bit during the trading session on Wednesday, as we are just below the 200-day EMA. That being said, the market is likely to continue to see a lot of downward pressure. The 0.6950 level above could be a short-term resistance barrier based on market memory. If we continue lower, then the 0.6840 level gets targeted.

NZD/USD Technical Analysis

The New Zealand dollar has completely fallen apart, and at this point in time, it looks like we are heading towards the 0.56 level. The New Zealand dollar, of course, is going to continue to be weaker than the Aussie dollar as the New Zealand dollar is backed by a much more dovish central bank than Australia. They both tend to move in the same direction, but at this point in time, as long as there is US dollar strength, there will be problems with the kiwi dollar. That being said, the 0.56 level is an area that was a major swing low, so we may be getting pretty close to the end here.

USD/JPY Technical Analysis

The US dollar continues to grind higher against the Japanese yen as we are above a 1986 swing high, and it looks like there’s no real stopping this trend. The occasional pullback, of course, will occur, and that should, at least in theory, end up being a nice buying opportunity. The 160-yen level underneath is a floor with the 50-day EMA being part of its support as well. I have no interest in shorting; the interest rate differential continues to favor America. I think this one’s going much, much higher.

If you’d like to know more about how to trade forex, please visit our educational area.