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

EUR/USD Technical Analysis

The euro initially rallied a bit during the course of trading on Monday but has also given back about half of those gains. So having said that, this is a market that I think continues to be somewhat range bound, especially as we could not hang on to those gains. Even if we do rally from here, I think you’ve got a situation where the 1.18 level above is significant resistance. So, it’s really not until we break above that level that I would see the Euro as breaking out. If we pull back from here, the 50 day EMA sits right around the 1.16 level, which also has after support. So, I think you still have to look at this as a somewhat sideways market.

USD/JPY Technical Analysis

The US dollar has risen slightly against the Japanese yen, going both positive and negative throughout the day, as we are hanging around the 50 day EMA. The 50 day EMA of course is a crucial indicator, but it’s also flat at the moment. Ultimately, this is a market that looks as if it is just stuck in a sideways range, perhaps somewhere between the 146.50 level and the 148.50 level. Ultimately, this is a market that just doesn’t seem like it has anywhere to go at the moment.

AUD/USD Technical Analysis

The Australian dollar did rally a bit early in the session, but it looks like it’s going to struggle with the 0.6550 level yet again. With that, I think there is a short-term opportunity perhaps for short sellers to get involved, but I also recognize that it’s then holiday trading, so you can only read so much into it. Because of this, I think it’s a short-term scout, maybe for 30, 40 pips that we could be looking at. If we break to the upside, the 0.66 level looks like it will be a significant barrier based not only on the large, round, psychologically significant figure, but also the previous trend line.

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