EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Mixed Ahead of FOMC

EUR/USD Technical Analysis

The euro has pulled back just a bit during the early part of the Wednesday session as we are waiting for the FOMC interest rate decision statement and press conference. The Euro could very well pull back to the 1.18 level, an area that previously had been resistance. If we break back below that level, it would be a very ugly sign indeed. If we pull back and bounce, then it suggests that perhaps we could go to the 1.20 level above.

USD/JPY Technical Analysis

The US dollar has broken below the support level on Wednesday, as it looks like the US dollar is going to continue to struggle against the Japanese yen. However, we haven’t really broken out of the consolidation quite yet. We’re getting there, but we’re not quite at that level at the moment. And in fact, you could very well say that 146 is the key. If we break down below that level, then I think you clear all doubt.

Right now, we’re just kind of hanging out in an area that has been messy support and resistance. This obviously will move based on the FOMC. And as people know that there’s an interest rate coming, it’s going to be about the statement and the press conference. Furthermore, keep in mind that the Bank of Japan has an interest rate decision early Friday, so any gain that the yen picks up against the US dollar could be short-lived for that reason alone.

AUD/USD Technical Analysis

The Australian dollar has pulled back a bit, perhaps seeing the 0.67 level as an area that’s going to cause trouble based on a previous swing high, more likely than not, based on the idea that we are just a scant few hours away from that all-important interest rate decision statement and press conference coming out of America, which obviously will have a major influence on what happens with the dollar next.

I do think we need a little bit of a pullback, but really you can’t put any serious money into practice until we see how we close on Wednesday. If we close above the 0.67 level, that would obviously be very bullish. If we break down from there, we’ll start to look for support at lower levels.

For a look at all of today’s economic events, check out our economic calendar.