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

EUR/USD Technical Analysis

The euro has pulled back just a bit during the early hours on Wednesday as we continue to see a lot of chop in the Forex markets and with the FOMC meeting minutes coming out late on Wednesday, it could cause a little bit of volatility. If we pull back from here, the 1.16 level should be a significant support level as it was previous resistance. Now that we have dropped a little bit over the last couple of days, it’s possible that we will continue a bit and at this point in time, I’ll be watching very closely with the 1.16 level being so important. It was significant resistance before, so we’ll see if it holds now. The 1.19 level above would be your target on any type of bounce or continuation higher.

USD/JPY Technical Analysis

The US dollar has rallied a little bit against the Japanese yen but gave back some of the gains to show hesitation in a market that I still believe is a buy on the dip situation between the 142 yen level on the bottom and the 148 yen level on the top. Short-term pullbacks at this juncture make sense and I would be interested in trying to buy the US dollar again after a bounce and a V-shaped pattern, or if we break above the 200-day EMA near the 148 yen area, then I think you’ve got a situation where we could continue to go much higher.

AUD/USD Technical Analysis

The Australian dollar initially did rally during the trading session on Wednesday, but as you can see has found itself struggling a bit near the 0.6550 level yet again, which of course is an area that’s been a bit like a magnet for price. I’m tired of talking about this level, but quite frankly, it’s an obvious one. And really at this point in time, I think we’re just trying to figure out where we’re going next. With the 50 day EMA underneath offering a bit of a trend line, I’ll be watching that. A breakdown below that could bring in more selling pressure.

But on the other hand, if we can break above the 0.66 level, then it opens up the possibility of a move to the 0.67 level. Ultimately, this is a market that has been noisy, but I think given enough time, we’ll have to make a bigger decision. You’re just going to have to let the market make that decision first, and then you can follow.

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