EUR/USD, GBP/USD and USD/JPY Forecasts – US Dollar Pushes Back Against Others

EUR/USD Technical Analysis

The Euro did try to rally a little bit in the early part of the session on Monday but then turned around to fall apart. All things being equal, this is a market that is staying in the same range it’s been in for a while between the 200-day EMA underneath and the 50-day EMA above.

And it is trying to figure out what to do next. All things being equal, I believe this is a market that will eventually try to take off in one direction or the other as we are in the middle of a large consolidation area between 1.1850 above and 1.14 on the bottom.

GBP/USD Technical Analysis

The British pound has been slightly positive during the trading session, but it still has a lot of resistance just above that could cause some problems, especially where we look at the 1.35 level through the prism of recent history where we have seen a lot of support and resistance. The 200-day EMA at the 1.34 level offers support. I think we continue to go back and forth in this 100-pip range.

USD/JPY Technical Analysis

The US dollar is slightly positive during the trading session early on Monday. The 160 yen level above will continue to be a problem as it’s an area that the Bank of Japan seems to want to defend, so we’ll watch that, but I do think we’re going to get there and test it.

Short-term pullbacks for me remain buying opportunities in this currency pair as the interest rate differential favors the US dollar so much. This should continue to be the way forward.

If you’d like to know more about how to trade forex, please visit our educational area.