EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Fights Back in Premarket

EUR/USD Technical Analysis

The euro has pulled back just a bit during the trading session here on Monday, as it looks like we may have just gotten a little bit ahead of ourselves. And I think ultimately, we could see a pullback to the 1.16 level, an area that previously had been significant resistance. So, I think it does make a certain amount of sense that, really, at that point in time, I think any type of bounce opens up the possibility of getting long again. If we break down below there, then it’s likely that we will go much lower.

USD/JPY Technical Analysis

The US dollar has risen against the Japanese yen as well, as we are well above the 145 yen level, and it looks much like a market that does want to go higher over the longer term, perhaps reaching the 148 yen level. That being said, we are very much in the middle of consolidation right now, and therefore, I’m not really aggressive with it at this point. I think short-term pullbacks do offer a little bit of hope here for those who would want to take advantage of value. I think 142 yen is your floor, 148 yen is your ceiling.

AUD/USD Technical Analysis

The Australian dollar has plunged based on trade tariff fears, but I think honestly, the one headline that seems to be missing from most analysis that I’m seeing this morning is that early Tuesday morning we have an interest rate decision coming out of Australia. So, I think a lot of traders who have been in this up trending channel probably just wanted to get out of it.

You can always reenter after these decisions are made and I think that’s what a lot of people are looking at. Ultimately, we could go lower but it’s really not until we break down below the 200 day EMA at the 0.6440 level that I start to look to see if I need to get short. That will almost certainly be after the RBA interest rate decision. If we turn around and break to a fresh new high above the 0.66 level, that would obviously be very strong.

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