EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Gives Back a Bit

EUR/USD Technical Analysis

The Euro has rallied ever so slightly in the early hours on Tuesday as we have bounced from the 50-day EMA. The Euro of course is the anti-dollar if you will. So, this gives us a perspective on how the dollar will more likely than not perform. We have seen a pretty significant sell off and the question now is, will the 1.12 level above offer resistance? If we bounce towards that area and start to see selling pressure again, I will then start to short this pair.

When you look at the longer term charts, we may have just seen a “throw over” of the overall range that the market had been in for what seems like a lifetime, with the exception of the one throw over that we had at the end of last year, when things got a little too bearish. So, 1.12 offer and resistance and then the market falling down to the 1.0950 level, for instance, would just be a return to the center of the previous consolidation range.

USD/JPY Technical Analysis

The US dollar has pulled back slightly against the Japanese yen, but quite frankly, it’s very slight and it does look very healthy. At this point, I anticipate that we will try to get to the 150 area, possibly above there. Short-term pullbacks should see support near the 145 yen level. The 50 day EMA is right around 146.29 yen. So that should offer support as well. Keep in mind, interest rate differential does favor the US dollar and therefore people get paid to hang on to this pair.

AUD/USD Technical Analysis

The Australian dollar has performed better than the other two currency pairs against the US dollar, but it remains in the same consolidation area that we’ve been in for a while now. So, with this, I think the market just really doesn’t know what to do with itself. But I am watching the 50 day EMA and the 0.6350 level, if we break down below there and we see the US dollar strengthening against other currencies, I’ll start shorting the Aussie as well. If we can break above the 0.65 level, then the Australian dollar has a shot at going to the 0.67 level.

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