EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar a Touch Mixed

EUR/USD Technical Analysis

The euro has gone back and forth during the early hours on Tuesday as we’re hanging around the 1.18 level. The 1.18 level is an area that previously has been significant resistance. So, we’ll see if it holds. I think at this point in time, it leans to the upside. But right now, this is still a fairly neutral market.

USD/JPY Technical Analysis

The US dollar has gone back and forth during the early part of the trading session against the Japanese yen on Tuesday as well, as we are hanging around the 200 day EMA. The 200 day EMA is flat, so that of course suggests that we are in a sideways market and let’s face it, we have been since the end of July, between the 146 yen level on the bottom and the 149 yen level on the top. Because of this, it makes quite a bit of sense that we just play this range going back and forth, perhaps buying the dips more than anything else.

AUD/USD Technical Analysis

The Australian dollar has shown itself to be a little bit positive after initially dipping early on Tuesday. So, at this point in time, it does look like the Australian dollar is trying to recover and head back towards a 0.67 level, with a 0.6550 level underneath offering support. The 50 day EMA is right there at the 0.6550 level as well. So, I think that it becomes a little bit of a floor in the market. Ultimately, I do think that we will go higher given enough time, but we also have to keep in mind that this is a market that has been very choppy. So, I think of it more of a grind to the upside than anything else. I don’t have any interest whatsoever in shorting this pair, at least not until we get below the 0.65 level.

For a look at all of today’s economic events, check out our economic calendar.