EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to See Choppiness on Juneteenth

EUR/USD Technical Analysis

The euro initially did dip slightly during the trading session here on Thursday but then turned around to show signs of life again. Keep in mind that this is the Juneteenth holiday in the United States. So really this was always going to be a somewhat quiet session, as basically it was just Europe trading, and of course, the typically quiet Asian session.

When you look at this market, you can see that we recently made a fresh high near the 1.16 level but have pulled back. I still think that there’s probably more of a tilt to the upside, but we are right in the middle of a consolidation area. So, I look at this more through the prism of short-term sideways action.

USD/JPY Technical Analysis

The US dollar has rallied a bit against the Japanese yen in that same time frame, initially pulling back below the 145 yen level, but now it looks like we’re going to make a serious attempt at threatening the 146 yen level. This is an area where I think if we can clear somewhat cleanly, we could have a nice breakout. It would make a certain amount of sense. The Japanese are having issues with their bond market, as far as not finding enough buyers. So, the Bank of Japan’s probably going now to be somewhat loose with its monetary policy going forward.

AUD/USD Technical Analysis

The Australian dollar fell against the US dollar as it is now threatening the bottom of the overall channel that we have been following for several months now. With that being the case, the 50 day EMA and the 200 day EMA come into the picture as potential support as well. But really at this point, the Australian dollar just doesn’t seem to be able to pick up momentum.

It has been grinding higher for a while now, but it just can’t get above that crucial 0.6550 level. And until that’s the case, it’s a short-term back and forth type of range-bound market more than anything else. If we break down below the moving averages, then we could see a drop to the 0.6350 level.

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