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

EUR/USD Technical Analysis

The euro has initially rallied a bit during the early hours here on Wednesday, but it looks like we are in fact giving back some of the gains. With that being the case, the market is showing clearly that the 1.18 level continues to be a major resistance barrier. Ultimately, this is a market that I think is going to be watching the 50 day EMA underneath and the uptrend line. If we were to break down below the uptrend line, then the 1.16 level gets targeted.

Anything below there, then the market really starts to fall apart, and I think it drops significantly. If we break above the 1.18 level, then it opens up the possibility of a move to the 1.19 level, followed by the 1.20 level. Keep in mind that we have non-farm payroll on Friday, which will be a major mover as well.

USD/JPY Technical Analysis

The US dollar initially tried to rally, only to fall apart against the Japanese yen during the trading session here on Wednesday, as it looks like we’re probably going to try to grind back down to the bottom of the overall consolidation. That means we could go down to the 146 yen level. That’s an area that’s been on a massive floor in the market. So, it’ll be very important and very interesting to watch. So, if we drop there and bounce, I think that is an extraordinarily good sign. If we turn it around and rally at this point, 149 yen probably will be the target.

AUD/USD Technical Analysis

The Australian dollar initially did fall against the US dollar, but then turned around to show signs of light at the top of the rectangle that we had been in previously. So, the 0.66 level looks like it is, in fact, trying to offer a bit of support based on market memory. We’ll wait and see how that plays out. But if we break down from here, then I’d be watching the 0.6550 level.

The 50 day EMA is right there as well. So, I think there is a floor in this market. If we can rally from here, the 0.67 level would be a bit of a target. We have been in an uptrend for quite some time. So, despite the fact that this has been a very lackluster move to the upside, the reality is that it’s been more of a grind. So, I’m not looking for explosive moves.

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