EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Gaining Momentum Again

EUR/USD Technical Analysis

The euro has fallen enough to break through the trend line I’ve been talking about for several days now and has even tested the 1.16 level. The 1.16 level must hold, because If it doesn’t, then I think you’ve got a situation where the US dollar starts to strengthen even further. You’ll note that I have a candlestick circled on this chart, which represents the FOMC press conference.

That was the peak of US dollar selling. And since then, we’ve only fallen. In fact, we have fallen almost 300 pips. So, while the world is talking about de-dollarization, the markets are buying them. Now, whether or not this is a massive trend change remains to be seen. But as things stand right now, it certainly looks like you’re fading rallies at the least.

USD/JPY Technical Analysis

The US dollar continues to skyrocket against the Japanese yen, but we desperately need some type of pullback in order to find a bit of value. Yes, it’s worked out quite nicely over the last three sessions, but eventually this type of mania gets a correction. And as things stand right now, this will be your job as a currency trader is to wait for value, assuming you’re not already in the trade. The 149 yen level should be support, followed by the 50 day EMA, which is sitting right at 148 yen. The 50 day EMA is starting to break above the 200 day EMA, kicking off the so-called golden cross, which is a longer term buying hold signal.

AUD/USD Technical Analysis

The Australian dollar has fallen as well, looking to reach the 0.6550 level, an area that seems to be a bit of a magnet for price here. If we break down below there, then the 200-day EMA comes into the picture at the 0.6550 level. If we can rally from here, breaking above the 0.6633 level opens up the possibility of a move to 0.67. Regardless, the Australian dollar has been very choppy and very noisy for months. I don’t think that’s changing anytime soon, and it’s one of the least favorite currencies to trade in favor of against the US dollar. So, assuming that the US dollar really starts to take off, you may see the Australian dollar get hit harder than many others.

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