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

EUR/USD Technical Analysis

The euro has fallen a bit to test the uptrend line that we’ve been watching for several months now. Ultimately, I think this is a market that eventually breaks down because it peaked during the FOMC press conference and really hasn’t done anything since then. And that screams weakness because if you cannot find a way higher against the US dollar when everybody started pricing in rate cuts, that is a very poor sign.

Furthermore, I am starting to see the US dollar strengthen against multiple currencies across the board. So, with that being the case, I think the Euro might be running into some trouble. If we break down from here, the 1.16 level will be the next target. Short-term rallies will have to deal with the 1.18 level, but if we can take that out to the upside, that would be a positive sign.

USD/JPY Technical Analysis

The US dollar continues to skyrocket against the Japanese yen, and we have not gotten the pullback that I would like to see in order to find enough value to get involved. The gap right now pretty much requires a 300 pip stop loss, so unless you’re willing to take that trade, I think at this point in time, you’re waiting for a pullback to get involved. If we can break above the 151 yen level, then I think you essentially have to hold your nose and just buy. So obviously, we are bullish, we’re going to remain bullish. I don’t see how that changes.

AUD/USD Technical Analysis

The Australian dollar is slightly negative during the session as it looks like the 0.66 level is now starting to offer a bit of a magnet for price, if you will. So, with that being the case, I think this is a market that probably finds its way lower. I don’t like the Australian dollar. I don’t like anything against the dollar at the moment, with the exception of maybe the Mexican peso, oddly enough.

So, at this point in time, this is a market that I think you’re looking to sell if we get a little bit of downward momentum. But right now, I think you’re in a situation where it’s probably more neutral than anything else and it’s lackluster trading.

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