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

EUR/USD Technical Analysis

The euro has dropped just a touch during early Thursday trading as the US dollar has strengthened just a bit. The market is essentially in the middle of an overall range and therefore, I think you are probably going to struggle to really get aggressive. Furthermore, you also have to keep in mind that the European Central Bank is going to have an interest rate decision. And of course, we get CPI in the United States. So, I expect this to be a very choppy market. And it’s where we close at the end of the day that matters. If we’re below 1.16, that’s very bearish. If we’re above 1.18, that’s very bullish, both of which lead to 200 pip moves.

USD/JPY Technical Analysis

The US dollar has rallied a bit against the Japanese yen during trading, which is not a huge surprise considering the way it has been acting over the last couple of days. It has been a little bit buoyant. And at this point in time, it wouldn’t surprise me to see the dollar go looking to the 149 yen level. Of course, we have the CPI number, and that will have its own influence. But as things stand right now, this looks like a market that’s ready to stay in the same range that it’s been in for some time.

AUD/USD Technical Analysis

The Australian dollar has gone back and forth during the course of the trading session as we continue to test the previous uptrend line and perhaps more importantly, the area right around the 0.66 level. It’s likely that the market will react to the CPI number and then make its next decision. If we drop here, then we could go look into the 0.6550 level. On the other hand, if we break above the 0.6650 level, then I think the Australian dollar has a real shot at taking off. Ultimately, keep in mind that the Aussie has underperformed a lot of other currencies against the greenback for months. So, this is my least favorite of the three pairs.

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