EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Chop

EUR/USD Technical Analysis

The euro has gone back and forth against the US dollar during the trading session on Thursday in the early hours as we wait for some inflation numbers but quite frankly, I think what we’re really waiting for is the speech from Jerome Powell in Jackson Hole, Wyoming. Will he say something to make things sound more dovish or hawkish, or will he just simply say nothing, which is actually something he’s pretty good at. So, I think there’s a lot of confusion here. It is worth noting that the 1.18 level has formed a double top.

It’s also worth noting that the 1.16 level is an area that we’ve seen some support at, and now that the 50 day EMA is approaching there, I think you’ll see more. Anything below there could open up a move to the 1.14 level. I don’t know though. I think ultimately this is a market that probably chops for the next 24 hours.

USD/JPY Technical Analysis

The US dollar has rallied against the Japanese yen to reach the 148 yen level. If we can break above there and possibly the 148.50 yen, then it could open up a move to the 151 yen level. Short-term pullback should continue to see significant support at the 50-day EMA just below. And until I think we get through that speech at Jackson Hole, this might be a sideways market.

AUD/USD Technical Analysis

In the Australian dollar, we have dipped a bit but then turned around to show signs of life at 0.64. If we can break here, then I think we will go much lower. Ultimately, I think in the short term, we will probably bounce, and we look for a reason to start selling again at the first signs of exhaustion.

The Australian dollar has underperformed the other currencies against the US dollar for quite some time. And if we are starting to see US dollar strength, that most certainly will play out against the Aussie pretty aggressively in my estimation. I have no interest in buying this currency at the moment. That being said, we are sitting on support. So, I don’t necessarily want to be starting a short position here either.

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