EUR/USD, USD/CAD, and USD/JPY – Short-Term Analysis for 08/18/2026

EUR/USD

The euro is a little bit choppy during the early part of the trading session after initially falling, but I think there are still some questions to be asked here about whether or not support comes back into play somewhere around 1.1550. If we get a bounce from there, I’ll be interested in going long. If not, it could be the beginning of something a little bit more negative, a little bit of a head and shoulders forming, but more importantly, it does look a little exhausted on the daily chart, so we’ll just have to see how this plays out. Interest rates are rising early here on Tuesday in America, so that is definitely going to be working against this.

USD/CAD

The US dollar had formed a hammer on the daily chart during the Monday session against the Canadian dollar, and now I’m watching to see if we can break a little bit higher. Anything above 1.39 shifts my focus to the upside. Between now and then, signs of exhaustion might get shorted by me. It’s been a nice steady downtrend for a while now, so definitely I think we’re in an area of inflection.

And if you look at the longer-term charts, you can see that we are sitting just above the 61.8% Fibonacci retracement level and just below the 50% Fibonacci retracement level, an area that a lot of traders look to for some type of entry.

USD/JPY

The US dollar has been a little bit positive against the Japanese yen with rising rates and that massive carry trade still in effect. That makes sense. We have broken above like a 4-ish day consolidation area early during the session, so I’m looking to get long on short-term pullbacks.

The 160 yen level still looms large. I also have a longer-term position in this that I’ve been holding for months, so I look at this as a potential setup to start adding.

Yes, I understand there’s a threat of central bank intervention, but they’ve done it three times at this point, and here we are.