EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Drops Early on Monday

EUR/USD Technical Analysis

The euro rose a bit during the early hours on Monday. As you get back to work this week, you’ll notice that the US dollar in general is a bit softer. It’s also worth noting that US bonds are selling off, so that all comes into the picture as well. With that being said, the euro is a natural beneficiary, as it is the largest currency traded against the US dollar, and we just re-entered the same consolidation area that we have been in. With that being the case, I think you’ve got a situation where traders will continue to look at this area between 1.13 on the bottom and 1.15 on the top as a potential consolidation range. If we break down below the 1.13 level, then the 1.12 level offers significant support.

USD/JPY Technical Analysis

The US dollar has pulled back rather significantly against the Japanese yen, but it is worth noting that somewhere around the 143.50 level, we had seen previous resistance, so one would assume that we should see support going forward. We also are in the midst of forming a massive double bottom right around the 140 yen level. So that is something worth paying attention to as well. As long as we can stay above that level, I still look for value and could consider buying dips that show signs of a bounce in this pair. If we break down below 140 yen, then the bottom falls out.

AUD/USD Technical Analysis

The Australian dollar is breaking out now and as a result, it looks like we are going to attack the 0.65 level as we have left the previous consolidation behind. Whether or not it has legs to go a lot farther remains to be seen, but a potential target would be 0.67. The area right around 0.6350 should now end up being support, but we’ll have to see. Keep in mind, Australia is highly sensitive to China, so that’s a little bit of a mixed blessing these days. And the latest headlines could have an influence on how people feel about Australia in general.

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