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

EUR/USD Technical Analysis

The euro has pulled back ever so slightly against the US dollar on Wednesday as we continue to see a lot of noisy trading. But ultimately, I think this is a situation where traders are going to continue to look at this through the prism of a shrinking US dollar. And if that’s going to be the case, then it’s very likely that any pullback will probably attract a certain amount of attention.

I would anticipate that the 1.16 level presents itself as being important again. As it was previous resistance, it should at least in theory be support going forward based upon the premise of market memory, if you will. I don’t really have any real interest in trying to short this market yet, although I do think it is overbought. If we break down below 1.15, then maybe.

USD/JPY Technical Analysis

The US dollar has rallied a bit against the Japanese yen as we continue to see support near the 142 yen level. We do have the jobs number coming out on Thursday and that obviously will have a major influence on this market. So, I think what we’ve got is a situation where people are looking at this as a range bound market, but that number could cause an extreme amount of volatility. I just don’t know. So, with that, we will have to be cautious, but we will also have to understand that it is probably only a matter of time before we try to bounce. If we do not, then we’ll almost certainly go looking at the 140 yen level.

AUD/USD Technical Analysis

The Australian dollar has fallen to reach back towards the 0.6550 level, an area that seems to be basically a magnet for price. And as a result, I think we’ve got a situation where traders are looking at this and trying to see whether or not the previous breakout and the previous resistance level holds as a potential support level. We’ll just have to wait and see how that plays out, but right now I think you’ve got a situation where if we bounce, then we could go looking to the 0.67 level. If we break down from here, then I think we head right back into the mess of consolidation.

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