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

EUR/USD Technical Analysis

The Euro initially did try to rally a bit during the early hours on Tuesday, but the 1.16 level continues to be resistant. Ultimately, this is a market that looks as if it is going to roll over and quite frankly, it just needs a little bit of a push. If we can break down below the 1.1550 level, I think it opens up a drop down to the 1.14 level. Remember, we were told that the US dollar was falling apart and during the FOMC meeting and press conference that was supposed to be the death knell for the dollar., but we’ve done nothing but strengthen since then.

USD/JPY Technical Analysis

The US dollar is back and forth against the Japanese yen, which is not a huge surprise considering that we had gapped higher and just took off to the upside. Sooner or later, gravity has to at least show some presence. All things being equal, this is a market that I think probably is due for some type of pullback, but whether or not we get it remains to be seen. I certainly wouldn’t short this market. I just think that it’s difficult to chase all the way up here due to the fact that the stop loss would have to be so huge.

AUD/USD Technical Analysis

The Australian dollar continues to struggle, and now I think we’re going to test the 0.64 level. If we break down below there, then it’s likely that the Aussie dollar will really start to fall apart. Short-term rallies end up being sold into from everything I can see, and it’s worth noting that the Australian dollar has been one of the weaker performers against the US dollar for months.

Despite the fact that the Aussie did gain some ground over the last several months, the reality is it’s been more of a grind while so many of the other currencies have done really well. In other words, if the US dollar starts to strengthen against everything, it’s really going to strengthen against the Australian dollar, so I’m very bearish on this pair.

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