EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Mixed in Early Thursday Trading

EUR/USD Technical Analysis

The euro initially pulled back a bit during the trading session on Thursday but has turned around to show signs of strength. I think this just simply means that we’re going to stay in the same consolidation area, which does make a certain amount of sense considering that we are working off froth. And of course, we have the non-farm payroll announcement coming out on Friday. So, I don’t know if anybody is going to get aggressive here heading into that figure.

As things stand right now, it looks like the 1.13 level offers support and the 1.15 level above offers resistance. If we were to break lower and break down below the 1.12 level, then I start looking for a trend change. If we break above the 1.15 level again, then I start looking for this uptrend to continue, perhaps to the 1.17 level.

USD/JPY Technical Analysis

The US dollar has shot higher as the Bank of Japan meeting has come and gone. The 145 yen level is an area that I think a lot of people will be paying attention to, and we did, in fact, see some resistance there. Nonetheless, this is looking more and more like a market that is trying to get away from the yen, and you definitely see that in other currencies as well. If we can get a daily close above the 145 level, then I think you have the makings of a massive double bottom that goes back to September of 2024. Short-term pullbacks would be expected, and I do expect a lot of noise here, considering that we have the jobs number coming out on Friday as well.

AUD/USD Technical Analysis

The Australian dollar continues to chop back and forth right around the 0.64 level. Quite frankly, I just don’t think it has anywhere to be right now as it struggles with the 200-day EMA. It’s got a lot of inertia to digest here, and maybe that’s all we’re doing. But the longer we stay here without some type of upward trajectory, the more likely it is we do break down. As things stand right now, though, in the Australian dollar, you have to remain somewhat neutral.

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