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

EUR/USD Technical Analysis

The euro initially tried to rally a bit during the early hours on Thursday but gave back the gains in order to show signs of weakness. I think at this point, a little bit of a pullback probably makes some sense. After all, we’ve had very strong price action over the last three and a half days or so. And as a result, people might be looking to take some profit out of the market.

The 1.16 level underneath continues to be an area that I think matters, and we’ll be watching that area very closely. The 50-day EMA sits just below there, about halfway between that and the crucial 1.15 level. So, I do think there’s a zone of support. If we can break out above the 1.1830 level, then the market goes looking to the 1.20 level.

USD/JPY Technical Analysis

The US dollar has bounced quite nicely from the 50-day EMA right around the 146 yen level, an area that I marked on the chart, I believe yesterday or the day before, as being interesting. Well, now it has become really interesting. At this point, I do think the US dollar is going to fight back and try to grind higher against the Japanese yen, perhaps reaching the 148 yen level in the short term, where the 200 day EMA currently resides. If we break down below the bottom of the daily candlestick, in other words, below the 146 yen level, then I think we could see the dollar drop to the 144 yen level.

AUD/USD Technical Analysis

The Australian dollar has hit the top of the channel and now looks as if it is going to pull back a bit. Not a huge surprise because this is a currency that, although it’s been grinding higher over the last several months, has no real momentum. A pullback to the 0.6550 level is most certainly not out of the question in a market that seems to be attracted to that price quite frequently. If we can continue to go higher, the 0.67 level is more likely than not going to be the next place we try to approach.

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