EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Look Strong Despite Give Back

EUR/USD Technical Analysis

The euro rallied a bit during the early hours on Thursday as we continued to bounce around the 1.05 level. At this point, we’re waiting for the non-farm payroll announcement on Friday, so it really isn’t a huge surprise that we’re just spinning our wheels here. This is an extreme low from the last couple of years, so it’ll be interesting to see if we can hang on.

The euro did break down below support pretty significantly before snapping back recently. So, the two-year consolidation support is seriously threatened here. The jobs number might be the catalyst to break through to the downside, but if we rally at this point and can break above 1.06, then the euro has a chance to go looking towards 1.0750.

USD/JPY Technical Analysis

The US dollar initially fell against the Japanese yen and remains negative at the time of recording, but it is showing signs of support and buyers jumping back in to try to support the attempted recovery. In the short term, it looks like we are simply consolidating. So, with that being said, if the market can break above the 50 day EMA, then I think it’s very likely that we will continue to go running towards the 156 yen level. If we break down below 148 yen, which is the 50% Fibonacci retracement from the recent bounce, then I think we have much further downside.

AUD/USD Technical Analysis

The Australian dollar has rallied ever so slightly against the US dollar, but quite frankly, the Aussie looks pretty miserable. I’m not a big fan of buying here, and in fact, I’m looking for selling opportunities after short-term rallies that show signs of exhaustion. The 0.65 level and the 0.6550 level above that, both could offer significant resistance. So again, I’m just looking to fade short-term rallies. If we can get above the 0.6550 level, then that could change a lot, but in the meantime, it doesn’t look very likely.

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