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

EUR/USD Technical Analysis

The euro has dropped a bit during early trading on Tuesday as the 1.16 level has offered resistance. I find this interesting considering that Friday was so bullish for the euro. And now it looks like people are starting to ask questions as to whether the US jobs report is a sign that there’s something uglier out there. Remember, the US dollar is considered a safety currency. When things go bad in the United States, oddly enough, people go to the bond market that requires US dollars. I’m watching this closely, but if we break back below the 1.15 level, we may see a deeper drop.

USD/JPY Technical Analysis

The US dollar has bounced nicely from the 50 day EMA on Tuesday, as it looks like we are threatening the 148 yen level again. If we can break above there, it’s likely that the US dollar will try to get back to its highs from last week. This is a market that has been grinding higher for a while and that has produced higher lows and higher highs, the very definition of an uptrend.

AUD/USD Technical Analysis

The US dollar is starting to fight back against the Australian dollar as well as the Aussie initially rallied but has rolled over yet again, as it looks like the market is struggling with the idea of the 50 day EMA being overtaken. Ultimately, this is a market that I think does break down. I’m starting to have less and less faith in the Australian dollar because quite frankly, when everything else was destroying the US dollar, the Australian dollar just couldn’t pick up any momentum. So, if things really start to fall in the dollar’s favor, I think the Aussie’s in trouble.

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