EUR/USD, AUD/USD and USD/CAD Forecasts – US Dollar Rips Higher

EUR/USD Technical Analysis

The euro crumbled during the trading session on Thursday as the 1.16 level has offered a bit of a ceiling, and of course, so has the 200-day EMA. Ultimately, this is a pair that is still very much in a consolidation range. The interest rates in America jumped after the Trump speech, and that has had the US dollar racing higher against almost everything, including the euro.

If the war is truly going to last a few more weeks, that puts more pressure on energy in the European Union as well, so therefore, I think this move makes perfect sense, but really, at this point, I think you have to look at this still as a sideways market.

AUD/USD Technical Analysis

The Australian dollar has plunged, which is also not a huge surprise, and in fact, it was sitting right at resistance when it did. The 0.6850 level is where we’re heading to, that’s an area that’s been supported in the past. If it does not hold, then I think that’s the move to the 0.67 level just waiting to happen. Rallies at this point in time, I don’t trust, although the Australian dollar is a little stronger than other currencies because of recent central bank behavior.

USD/CAD Technical Analysis

The US dollar has risen against the Canadian dollar as well, but again, much like a couple of days ago, we did look a little overstretched, and with that, I think you have to be very cautious. The 1.3950 level is beginning to show significant resistance that extends to the 1.40 level.

Short-term pullbacks, I think open up the possibility of buying dips but the 200-day EMA at the 1.38 level I think is your floor. With that being the case, I think we continue to see US dollar strength, but you need to be somewhat selective about how far you think this reaches because, quite frankly, the Donald Trump speech really didn’t tell us anything new. This is the market overreacting.