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

EUR/USD Technical Analysis

The euro initially pulled back just a bit against the US dollar during the trading session on Tuesday, but has started to rally again as we consolidate overall. I think this is a situation where the euro is trying to build a case to go higher, but I don’t know if it has the momentum. After all, we do have a bit of a double top at the 1.18 region that I think traders will still be paying attention to.

Underneath, we have the 1.16 level with the 50-day EMA rapidly approaching it. Ultimately, I think this is a scenario where given enough time, we will have to make a bigger decision, but as things stand right now, I think we might be in a scenario where we are just simply squeezing, trying to figure out the next overall move.

USD/JPY Technical Analysis

The US dollar initially rallied against the Japanese yen during trading here on Tuesday, but at this juncture, it just looks like a market that continues to see a lot of noise at the 148 yen level. If and when we can finally leave this area, the next target might be 151 yen, as that’s basically where we saw all the massive selling from a couple of weeks ago.

And keep in mind that despite the fact there is a general consensus that the Federal Reserve is going to start cutting, the interest rate differential still heavily favors the US dollar. And that’s something that eventually will come back into the picture. The 50-day EMA underneath offering support is worth paying close attention to because if we break down below there, we could find ourselves dropping to 146 yen.

AUD/USD Technical Analysis

The Australian dollar has done next to nothing in the early hours here on Tuesday, perhaps waiting for the interest rate decision out of New Zealand, as the two currencies move somewhat lockstep with each other, because there will be a sympathy related move when we get that announcement early in Wednesday trading. So, I think at this point, it makes a certain amount of sense that a pair that’s been admittedly quiet and sideways anyways, isn’t doing much. The 0.6550 level continues to be an area of resistance that I’m willing to fade at the first signs of exhaustion.

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