EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Threaten Other Currencies

EUR/USD Technical Analysis

The euro rallied just a touch during the early hours on Thursday, as we continue to see a lot of US dollar strength. It’s been a pretty remarkable turn of events for the US dollar over the last couple of days and with Jerome Powell sounding a bit more hawkish than people had anticipated, the US dollar continues to look as if it’s going to threaten the euro.

At this point, bounces may run into some resistance near the 1.15 level, an area that I do think, given enough time, probably will prove itself to be pivotal. If we break down below the low of the Wednesday candlestick, that opens up a move down to the 200-day EMA. I’ve been watching the US dollar for a while now, and it has shown that it’s getting tired of being weak. And I think we’re at a point now where it is getting ready to make, I believe, a bigger move. We’ll just have to wait and see. But suddenly the euro looks very bearish.

USD/JPY Technical Analysis

The US dollar initially fell against the Japanese yen, but once we got the Bank of Japan interest rate decision and statement, as well as the conference, out of the way, we turned around and rallied yet again. This tells me that it’s very likely the US dollar will continue to grind higher against the Japanese yen, and we are on our way toward the 151 yen level. Short-term pullbacks continue to be buying opportunities.

AUD/USD Technical Analysis

The Australian dollar tried to rally but has given it back and at this point we are getting close to breaking down. If we close below the 0.64 level, that could send the Aussie much lower, but I also recognize that the Aussie has been more of a grind than anything else as of late. And we do have to keep that in mind. If we drop, I suspect that somewhere around the 0.62 level will end up being the target. If we turn around and rally and recapture the 50 day EMA, then we just continue to chop around in the same channel we’ve been in for 90 % of the year.

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