AUD/USD, NZD/USD and USD/JPY Forecasts – US Dollar Mixed in Asia

AUD/USD Technical Analysis

The Australian dollar initially fell to pierce the crucial 0.7150 level but has since turned around to show signs of life. By doing so, it looks like we’re going to form a hammer, which, of course, is a very bullish sign.

I think at this point in time, it’s simply going to show that the Aussie dollar is likely to continue in the same consolidation range it has been in for a while, between roughly 0.71 and 0.7225. Really, nothing changes here, it is more of a creep higher.

NZD/USD Technical Analysis

The New Zealand dollar has also bounced, and it looks like it’s going to be perfectly happy just consolidating in the same range it’s been in, using the 50-day EMA and the 200-day EMA overnight to find support.

It now looks like it may have to go looking to the 0.5925 level. That is an area that previously had been resistance. A breakdown from here could open up a move down to the 0.5825 level.

USD/JPY Technical Analysis

The US dollar finds itself positive again against the Japanese yen during trading on Tuesday, reaching the 158 level. This is an area that could cause a little bit of trouble, but I think ultimately probably see an attempt to get above there.

We have formed a couple of hammers in a row after that intervention and that means that traders will continue to look at this as a well-supported market that probably opens up a move to the 160-yen level. If we break down from here, the 156-yen level is an area that I think offers support and, quite frankly, is the floor in the market at the moment.

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