EUR/USD Technical Analysis
The euro has gone back and forth during the course of the early part of the trading session here on Wednesday, as we are basically in the middle of the overall consolidation area that we have been in. The 1.16 level on the bottom has shown itself to be massive support, while the 1.18 level above is significant resistance. Ultimately, this is a market that is trying to figure out where to go next. And with the European Central Bank meeting on Thursday, I think that might be your next big mover.
USD/JPY Technical Analysis
The US dollar is holding its own against the Japanese yen after initially plunging during the Tuesday session. On Wednesday, the market saw a market that was just hanging around the 50-day EMA, which, of course, was where we bounced after the sell-off during the Tuesday session. All things being equal, this is a market where if things basically stay the same, I don’t see any reason why we can’t go to the 148.50 yen level, possibly even the 149 yen level, without really breaking the pattern. We are more or less hanging out until the Federal Reserve meeting next Thursday is my suspicion.
AUD/USD Technical Analysis
The Australian dollar has rallied again during the early part of the session, but it is starting to show hesitation at the exact same spot that it did during the previous session. Ultimately, it’s not until we get above the 0.6650 level that I’m convinced of Australian dollar strength. And I do believe at this point in time there is something going on out there, I think there is a certain amount of fear about the global economy that traders are starting to express via some of these commodity currencies such as the Australian dollar, the Canadian dollar, New Zealand dollar, et cetera. So, with that being said, I think we still are bumping up against a significant barrier. And I would anticipate a little bit of negativity here, although I’m not calling for a massive sell-off.
For a look at all of today’s economic events, check out our economic calendar.