EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Is a Bit Mixed Early on Tuesday

EUR/USD Technical Analysis

The euro has rallied a bit during the trading session here on Tuesday, but it does look like it’s giving up some of those gains, at least a little bit. Ultimately, this is a market that I think pulling back from here makes a certain amount of sense. We are overextended. Perhaps the 1.16 level is a place that people will be looking for a potential short-term target for short sellers, but also an area where those who expect the trend to continue might be interested in buying the euro based on value. Ultimately, I don’t know that much has changed. It’s just a little bit noisy at the moment.

USD/JPY Technical Analysis

The US dollar has rallied quite nicely against the Japanese yen over the last couple of days. And at this point in time, I do think that it will eventually find its way towards the 148 yen level where the 200-day EMA waits. Whether or not we can break above there remains to be seen. But right now, I think that’s just your short-term target. Short-term pullbacks continue to be buying opportunities in what has been a relatively reliable consolidation area, which could be kicking off a longer-term double bottom.

AUD/USD Technical Analysis

The Australian dollar has risen quite a bit during the trading session here on Tuesday after the RBA decided not to cut rates like everybody had anticipated. Again, though, we find ourselves dancing around the 0.6550 level and starting to see a little bit of pushback. So, it’ll be interesting to see how this plays out. I think a lot of people were surprised by that decision, and some short covering happened.

I don’t know that this has been a massive buying of the Aussie. I think it’s just people trying to get out of the way of what could be a problem. Ultimately, though, the 50-day EMA looks as it is offering a bit of a trend line. So, watch that. But I think we probably continue to see a lot of trouble in this same region. It’s not until we break above 0.66 that I am convinced that we could move up to 0.67 on bullish momentum.

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