EUR/USD, AUD/USD and GBP/USD Forecasts – Dollar Gains Early but Gives Back

EUR/USD Technical Analysis

The Euro has initially gapped lower to kick off the trading session, but you can see we have turned things around to show signs of life as interest rates in America dropped again. That being said, the 1.18 level above is significant resistance and we have seen the markets struggle in that area because of this.

I’m actually looking for short-term signs of exhaustion that I could start selling into. If we can break above the highs on Friday, then we’ll have to reverse course and start thinking about 1.20, which has been important previously in this pair.

AUD/USD Technical Analysis

The Australian dollar has done the same thing gapping lower before turning back around and showing signs of life. We find ourselves right around that 0.7150 level, an area that has been very difficult to overcome.

If we can break above the 0.7225 level, then I think we will continue to go much higher. Otherwise, there’s a real possibility we may fade this rally on some type of bad news or interest rates jumping.

GBP/USD Technical Analysis

The British pound has broken back above the 1.35 level, but I think there’s a lot of resistance between here and 1.36 and that means that any signs of exhaustion could end up opening up an opportunity to get short and start buying the dollar.

As things stand right now, I think you have to look at this as a market that you have to wait and see. The British pound, in general, has been stronger than many other currencies against the dollar, and that could very well continue to be the case.

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