EUR/USD, USD/JPY and AUD/USD Forecasts – US Dollar Strong Early on Thursday

EUR/USD Technical Analysis

The Euro dropped again during trading on Thursday as we reached the 50-day EMA. Interest rates in America rose overnight, so that brought in US dollar strength. I don’t know that this is anything more than just continued consolidation as we have reached the top of the overall range for the last almost year.

So, a pullback made a certain amount of sense. As much noise as we see in the Euro, the reality is, we’ve been in this range for what seems like a lifetime, and at this point, we’re getting close to the middle of it. So, to use a phrase that is quite popular, don’t diddle in the middle. This is a neutral market.

USD/JPY Technical Analysis

The US dollar is approaching the crucial 160 Yen level in the US dollar versus Japanese Yen pair. This is an area that features a lot of resistance, but the resiliency of the US dollar to keep coming back and pushing against it tells me that eventually, this will give way. Once we break the 160.40 Yen level, we could see the US dollar rise quite drastically, maybe for years.

This is a major swing high from 1990. At this point, though, I prefer to buy dips. I wouldn’t jump in right here, although that’s the direction you want to be in long-term, the interest rate differential will continue to pay you.

AUD/USD Technical Analysis

The Australian dollar has fallen just below the 0.7150 level, and now I think it will test the 0.71 level. If we break down below there, then we have a deeper correction towards the 50-day EMA, and you probably see the US dollar strengthen against most things. It wouldn’t just be here. On the other hand, if we bounce from here, and that makes a certain amount of sense, I think we’re just going to continue to trade in a 50-pip range.

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