EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Softens Early on Thursday

EUR/USD Technical Analysis

The euro has exploded to the upside in the early part of Thursday as an ECB official has said that monetary policy is stable. And that suggests, of course, there won’t be any more cuts. That has had the euro break significantly above the 1.15 level. And if we can keep up this type of momentum, we should see that drag it higher. On the other hand, if we break back down below the 1.15 level, that would be a very ugly turn of events. We do have a couple of announcements coming down to the United States later in the day that could cause a little bit of volatility, though, so do keep that in mind.

USD/JPY Technical Analysis

The US dollar has dropped pretty significantly against the Japanese yen, but we are still in the middle of overall consolidation. So, while it is an ugly candlestick and we did form a couple of shooting stars a couple of days before, it is just more of the same. I still look at the 142 yen level as a major support level. And at that point in time, I would expect to see buyers come back to support the market. If we were to break down below there, then we may see a move to the 140 yen level, but right now we’ll have to wait and see. I don’t necessarily look at this as a market that I would like to short. I want to continue to look for long, but right now we just don’t have the proper momentum.

AUD/USD Technical Analysis

The Australian dollar has turned around during the trading session after initially falling. The Aussie dollar has been a little bit of a lackluster currency over the last several weeks, but it has been grinding slowly higher. So, with that being the case, it’s not a huge surprise to see that there were buyers willing to step in and pick up at the dip.

The 50 day EMA looks as if it is going to break above the 200 day EMA and with that being said, the so-called golden cross could be kicking off. The 0.6550 level above being broken would be a very big signal that we are going higher. And we did try to do it during the Wednesday session, but we gave it back. And now it looks like we’re going to continue to bounce around in this same area, probably hanging on every word coming out of the US and Chinese trade talks.

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