EUR/USD, USD/CAD and AUD/USD Forecasts – US Dollar Drifts Lower Early

EUR/USD Technical Analysis

The euro has risen a bit against the US dollar trying to recapture some of the area it gave back late during the previous session, Wednesday, touching the 1.18 level could be a sign of what is going to happen today on Thursday. That might be another attempt, but when you look at the chart recently, the area above 1.18 has been very difficult to crack.

Yields in America are dropping, but they are also approaching an area that has seen a bit of support. So, if yields do in fact bounce, there is a good shot that the euro pulls back. I am looking to see if there are signs of exhaustion for a short-term selling opportunity.

USD/CAD Technical Analysis

The US dollar has pulled back slightly against the Canadian dollar, but it still looks like it is in a basing pattern, and it is trying to find a reason to go higher. If we do drop from here, the 1.36 level might be short-term support, and the 1.3550 level most certainly is; it has proven itself multiple times. Pay attention to those US rates. If they turn around, that probably continues the bounce here.

AUD/USD Technical Analysis

The Australian dollar still looks strong, and it looks like it is trying to take some of those gains that it gave back during the previous session as we get moving on Thursday. Again, this will probably be rates driven but keep in mind Australia is a little bit of an outlier in the sense that the Reserve Bank of Australia recently raised rates, unlike so many other central banks.

With that, I remain bullish on the Australian dollar, and even if it does pull back, I just sit on my hands. There are other ways to play the US dollar in favor of the US dollar, but this is not a chart you do that with.

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