FX.co ★ 07.04.2021: USD loses momentum across board. Outlook for USD, USD/JPY, AUD/USD

07.04.2021: USD loses momentum across board. Outlook for USD, USD/JPY, AUD/USD

Yesterday, the US dollar index lost momentum. At the end of the session, it fell to a low of 92.3 as expected. What should we expect from the US currency today? Let’s find out in our video review! We will also discuss the trajectories of the yen and the Australian dollar.

Let's start!

On Tuesday, the US published results of the Job Openings and Labor Turnover Survey.

As you can see on the chart, the number of job openings in the United States increased by 268,000 compared to the previous month. This is the highest level since January 2019.

In fact, the reason for a downward movement is purely technical. The US dollar index has completed its five-wave pattern, which we have been following from the very beginning. Its rally ended exactly at 93.5. Today, the quote will be in the range of 92.250 - 92.450.

In the long term, we should expect one of two scenarios:

The first scenario suggests a new upward correction, which can be viewed as the beginning of a large uptrend. As a result, the US dollar will strengthen considerably across the board.

The second scenario implies the beginning of a downward movement, which may push the greenback to the recent lows.

Currently, traders can hardly be pessimistic about the US dollar because the US economy is already stronger than the European one thanks to huge stimulus measures. However, it is better to closely monitor the US Treasury yields and other fundamental factors.

So, the US currency looks exhausted, extending losses against its major rivals. Yesterday, after the greenback declined by 0.31%, the dollar/yen pair sank by 42 pips. Technical analysis only confirms that this pair has already begun a downward trend.

After a short consolidation in one or two days at the level of 109.37, the pair is likely to slide to the target level of 108.40. If so, it may well dip to the support level of March 10 and 23.

At yesterday's meeting, the RBA did not change the settings of its monetary policy as widely expected. However, the regulator made it clear that the key rate would not be raised until 2024. Investors ignored this news. They opened long deals on the Aussie amid the weakening of the US dollar. The quote was in the range of 0.7665-0.7706. Analysts think that it may be stuck there for several days.

Now, we expect a small price increase in the specified range with the continued sideways movement of the chart.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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