EUR/USD, AUD/USD and USD/CAD Forecasts – US Dollar Rises Slightly in Early Wednesday Session

EUR/USD Technical Analysis

The Euro has pulled back during the early part of the trading session here on Wednesday, with the 200-day EMA offering a bit of a barrier. If the market were to break above there, then the 50-day EMA gets targeted next.

The Euro is more likely than not going to struggle due to the fact that there are a lot of questions about energy in the European Union, and quite frankly, the latest comments after the ECB interest rate decision weren’t exactly stellar for the economy.

Meanwhile, the United States dollar continues to see higher than usual rates behind it, so I think you have a scenario where you basically have a sell-the-rally type of situation. We are right around the fair value level from the consolidation over the last year, so it’s not surprising there’s a little bit of a problem going higher.

AUD/USD Technical Analysis

The Australian dollar pulled back just a touch, showing signs of hesitation again, with the US dollar strengthening around the world. That really has no big surprise here in this market. We could drop towards the 0.6950 level, an area that is significant support, an area that is attracting the 200-day EMA.

To the upside, we have the 0.7150 level offering resistance. I think we’re just stuck in this range. I think this is going to trade very much like the Euro.

USD/CAD Technical Analysis

The US dollar is rallying, breaking above the 1.40 level. The market continues to look as if it is trying to break to the upside, perhaps to the 1.41 level, an area that’s been resistance in the past. This, I believe, is a direct indictment of the Canadian economy. This is also perhaps being helped a little bit by the fact that oil is cooling off.

But in the longer term, this looks like it could have some room to run. If we can clear the 1.41 level, we could be looking at 1.45. At this juncture, short-term pullbacks continue to be buying opportunities.

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