EUR/USD, GBP/USD and AUD/USD Forecasts – Dollar Softens After NFP

EUR/USD Technical Analysis

The Euro has rallied a bit against the US dollar after the jobs report came out and it did not send interest rates screaming. That being said, this is a market that I think continues to see a lot of noisy behavior and I do think that there is a significant resistance barrier above that needs to be paid close attention to.

The 1.1850 level is an area that, over time, I think will continue to be of interest. I think if we get anywhere near it, there should be sellers willing to come in. The question is, can we break above there, because if we can, then the 1.1950 level gets targeted, followed by the 1.20 level. Short-term pullbacks could be buying opportunities, but if we break down below the 1.17 level, we’ll see that there is the 50-day EMA.

GBP/USD Technical Analysis

The British Pound is rallying a bit during the trading session, but it is still in consolidation as well. The area between 1.3650 and 1.37 continues to be a very difficult place to live and break through. So I am still a little leery here. I don’t know that the pound is suddenly going to go screaming to the upside. The base case scenario, at least at the moment, is continued consolidation.

AUD/USD Technical Analysis

The Australian dollar is fairly strong in general and that makes sense because the Reserve Bank of Australia has recently raised rates, something that most central banks just cannot do at the moment and in this environment, I think the Australian dollar continues to be somewhat of a winner.

It is not screaming higher, that is just because of all of the noise in the bond market, but short-term pullbacks continue to offer buying opportunities in a market that I think eventually goes looking to the 0.73 level.

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