EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Looks Weak in Early Tuesday Trading

EUR/USD Technical Analysis

The Euro has rallied a bit during the early hours on Tuesday to test the 1.16 level, an area that, of course, is fairly important due to previous action. And now I think you have to ask the question, can we break out to the upside? This is most certainly an important level and the bullish engulfing candlestick from the Monday session could foretell a move to the upside, but I need to see this market stay above 1.16 for a daily close, preferably above 1.1650 to start buying.

USD/JPY Technical Analysis

The US dollar has plunged against the Japanese yen to fall to the 50-day EMA near the 145 yen level. The question now is, can we bounce? If we do, I’m a buyer. If we don’t, I’m probably buying this somewhere closer to the 143 yen level. The interest rate differential keeps me interested to begin with. And of course, we have to keep in mind that although the Federal Reserve will be cutting rates later this year, it is still a country mile the distance between interest rates in the United States and Japan.

AUD/USD Technical Analysis

The Australian dollar has rocketed higher as we have had right back to the same area of resistance that we have seen before. So, the question is, can we break above the 0.6550 level finally? And if we do, does it open up a move to the 0.6675 level? Short-term pullbacks offer the possibility of buying if you’re bullish still. However, if we get an exhaustion candle, that might not bode too well.

The Australian dollar has been very difficult to trade all year, really. It hasn’t had too many clean moves, and I don’t know that it’s about to change anytime soon. Again though, I’m watching 0.6550 because it is important.

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