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

EUR/USD Technical Analysis

The euro has rallied a bit during the early part of the trading session here on Tuesday, and now that the CPI numbers came out as expected in the United States we really haven’t done a whole lot since then. All things being equal, it looks like we are paying very close attention to the 1.16 level, which is an area that’s been important a couple of times now. And of course, we have the 50 day EMA sitting just below there offering support.

With that being the case, I think we have a scenario where traders are going to continue to see a lot of noisy behavior and a lot of volatility, but I think we may try to pop a little bit here, whether or not we can clear 1.18 is a completely different story.

USD/JPY Technical Analysis

The US dollar initially rallied against the Japanese yen during the early hours here on Tuesday but gave back gains as CPI again came out as anticipated. We are hovering right around the 200-day EMA, which, of course, is an indicator that a lot of people pay attention to anyway. So, I think you would anticipate seeing a bit of noise here regardless. If we do break down from here and break down below the 200 day EMA, then we could go looking at the 50 day EMA underneath. So, with that being said, I think you’ve got a lot of cushion underneath that will continue to push to the upside, although I don’t know how quickly.

AUD/USD Technical Analysis

The Australian dollar fell initially during the day but has turned around as the 50 day EMA has held out support and let’s be honest here, this was all about the CPI number not being hotter than anticipated. So, at this point, the Australian dollar could go looking to the 0.6550 level, an area that’s been important multiple times in the past. And with that, I think you have to assume it’s a bit of a magnet for price.

If we break down below the bottom of the candlestick, then it opens up the possibility of a move down to the 200 day EMA at the 0.6457 level. Anything below there could open up fresh selling, but right now I think we’re just heading right back into the same area that we’ve been stuck in for what seems like a lifetime here.

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