EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Soften Ahead of Fed

EUR/USD Technical Analysis

As we kick off the Tuesday session, the Euro is hanging around the 1.18 level against the US dollar in the top of the range that we had been in for a while. And now it’ll be interesting to see how this plays out next because of course, if we can break out and continue to go higher, that would be a major turn of events in this pair and could open up the possibility of a move to the 1.20 level.

That being said, it’ll be interesting to see how we react to the Federal Reserve interest rate decision on Wednesday because if there’s a bit of fear in the market based on what Jerome Powell says, things could turn around quite quickly. Nonetheless, it’s obviously not a pair that you’re going to be shorting anytime soon. And as a result, short-term dips might get bought into.

USD/JPY Technical Analysis

The US dollar is down against the Japanese yen but is also starting to show signs of life near the 146.50 yen level, an area that’s been the bottom of the overall consolidation that we’ve been in for a while. We are hanging around the 50 day EMA, which is relatively flat, and we are just below the 200 day EMA, which is extremely flat. In other words, I think we are just hanging around and killing time between the central bank meetings in America and Japan that happened this week.

AUD/USD Technical Analysis

The Australian dollar is choppy and sideways in early trading on Tuesday, as it does look like it’s getting a little stretched at this moment. It would not surprise me at all to see a bit of a pullback and that pullback probably opens up the possibility of value hunting, but we’ll just have to wait and see. The Australian dollar has picked up quite nicely over the last couple of weeks. So, it’ll be interesting to see if it can keep up this momentum.

The 0.67 level is an area that I think causes some issues. So again, I believe any signs of weakness probably sends this market back down into a buy on the dip mentality. We’ll just have to wait and see how that plays out.

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