EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Fight

EUR/USD Technical Analysis

The euro has gone back and forth during the early part of the trading session on Wednesday as we continue to find ourselves somewhat stuck in a range. And as a result, I think you have a scenario where traders are going to be looking for some type of directionality. The 1.15 level above offers a significant barrier, while the 1.12 level underneath offers significant support. I would also pay attention to the 1.13 level. It’s a minor support level, but it has been somewhat useful. With that being said, I think we’re stuck in this range working off this excess froth, waiting on some type of news beyond just the CPI, probably the US and Chinese trade deal.

USD/JPY Technical Analysis

The US dollar has rallied a bit against the Japanese yen in early trading as we continue to see the interest rate differential play out. If we can break above the shooting star here, which would be a move above the 146.50 yen level, I think that confirms US dollar strength against the Japanese yen and it could have opened up a bigger move towards the 200 day EMA. As things stand right now though, short-term pullbacks continue to be potential buying opportunities, with the 142 yen level offering nice support.

AUD/USD Technical Analysis

The Australian dollar has pulled back yet again as we continue to see the 0.6550 level offer pretty significant resistance. Short-term pullbacks in this general vicinity make quite a bit of sense. It’s more of a slow grind higher that we see here. This is probably all about the US-Chinese relations as well. We are getting ready to get the so-called golden cross, with the 50-day EMA breaking above the 200-day EMA signaling a longer term uptrend possibly, but they also look a little bit flat.

So at this point, I think we’re still stuck in this range. It’s more or less a buy on the dip market, but it’s for short-term trading. Longer-term trades are going to have a lot of problems here, at least until we break above the 0.6550 level on a daily candlestick.

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