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

EUR/USD Technical Analysis

The euro has been back and forth during the course of the early hours here on Thursday, as we have tested the 1.18 level. This is an area that had been important previously, so therefore I think it’s worth paying close attention to. As it was resistance, it dictates that it should be support and that’s what we’ve seen so far. Whether or not we can hang on to this remains to be seen, but it certainly is an area where you would expect the buyers to try to get involved. If we turn around and bounce from here and look at the 1.19 level, it’s possible that the uptrend in the euro will continue, and we will look at the 1.20 level.

USD/JPY Technical Analysis

The US dollar has rallied against the Japanese yen as we are hanging around the 50 day EMA. The dollar, of course, has recovered quite nicely against the Japanese yen, and more importantly, we have to keep in mind that early during the Friday session, we will get an interest rate decision from the Bank of Japan, which will obviously have a lot to do with where we go next. As things stand right now, it looks like we’re just hanging out in the same range between 146 yen on the bottom and 149 yen at the top, thereby making this still a neutral market.

AUD/USD Technical Analysis

The Australian dollar pulled back a bit early during this session, but has turned around to show signs of life. By doing so, it looks like we could go back to the 0.67 level. The 0.67 level is a major swing high from November of 2024. So, we’ll see if we can break above there, but so far it does look good for the Aussie dollar. If we were to break down below the 0.66 level, then I think the 0.6550 level is your next target. This is a market that has underperformed all year. So, the fact that it is doing fairly well at the moment and in line with the euro basically is a promising development.

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