EUR/USD, USD/JPY and AUD/USD Forecasts – US Dollar Continues to Fight

EUR/USD Technical Analysis

The euro initially did rally a bit during the trading session on Wednesday, but gave back those gains pretty quickly. And as a result, it looks like we are still staying within the range that we had been in between 1.14 and 1.1850 or so. With this, I would not be surprised at all to see this market drop down toward the 50-day EMA. A rally from here I still think has to deal with the 1.1850 level as a barrier. Watch that 10-year yield in America if it breaks above 4.3% then you could see the US dollar really take off.

USD/JPY Technical Analysis

The US dollar has dropped a little bit against the Japanese yen, but that is not a huge surprise with that 10-year yield slipping just a bit during the session. All things being equal, we are still very much in a trading range between 158 and 160, and I think that continues to be the case. I like this pair for the upside over the longer term, but I also recognize that it may take a while to finally make that happen, mainly due to the fact that the 160.40 level is an area that has been resistant all the way back to the 1990 swing high.

AUD/USD Technical Analysis

The Australian dollar initially gained against the US dollar, but despite the fact that interest rates in America have slipped, we have seen the dollar turn things around against the Aussie. With this being said, I think the market continues to be one that traders will look to buy on dips. But if the US dollar really starts to take off, I do not know that I would short this one. I think I would be more apt to stay short of the euro, maybe buy the dollar against the Swiss franc. The Australian dollar is going to have a little bit of resiliency to it because the RBA had recently raised rates.

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