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

EUR/USD Technical Analysis

The Euro initially tried to rally during the early hours on Thursday, but it looks like we are giving those gains back up as the 50-day EMA continues to be of importance. Ultimately, I think this is a pair that’s going to continue to look very dire. And I think that the best way forward, and I’ve been saying this for a couple of weeks now, is to simply fade rallies that show signs of hesitation. The 1.05 level begins pretty significant resistance on the way to the 1.06 level, with the 1.03 level being support followed by 1.02.

USD/JPY Technical Analysis

The US dollar has pulled back a bit against the Japanese yen, but really at this point in time, it’s more or less going to be a pullback from a massive shot higher. With that being said, this is a market that if it can clear the 155 yen level, it can go much higher. I do believe that the interest rate differential still matters despite the fact that Japan is at least paying lip service to the idea of inflation, and at this point in time a bounce probably signals another buying opportunity.

AUD/USD Technical Analysis

The Australian dollar initially tried to rally but gave up gains as we continue to consolidate in the same area. The 50-day EMA has, of course, offered a significant amount of resistance as it has multiple times here recently. So, with that, I think you still have to pay attention to the 50-day EMA and the 0.6350 level above as potential barriers. Those were areas that we had seen support previously, so market memory makes quite a bit of sense in this general vicinity. All things being equal, the US dollar looks like it is still much stronger than the Australian dollar.

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