EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Mixed in Early Trading

EUR/USD Technical Analysis

The euro rallied a bit during the early hours on Wednesday as we broke back above the 1.12 level, but you’ll notice that we are starting to struggle a bit here, which is something that I had warned against. This is an area that I think will determine where we go next and a break above the 1.13 level would be very bullish. But if we break down from here and perhaps even close below the 1.12 level on a daily candlestick, then I think the market goes lower, perhaps reaching 1.11, or maybe even 1.0950.

USD/JPY Technical Analysis

The US dollar has fallen against the Japanese yen during trading to test the 50-day EMA again on Wednesday as chop becomes the norm. Ultimately, if we can turn around and rally to take out the top of this candlestick, that would be a very bullish sign, and it would confirm the breakout and double bottom, sending the US dollar towards the 150 yen level, which obviously is a large, round, psychologically significant figure and an area that I would expect a lot of trouble at.

AUD/USD Technical Analysis

The Australian dollar initially tried to rally, but it looks like it’s continuing to struggle with the 0.65 level. At this point, we are still stuck in the same consolidation, so it’ll be interesting to see how this plays out, but keep in mind that the Australian dollar is highly levered to the Chinese economy, and as a result, the market is one that you have to pay attention to multiple things that don’t even have anything to do with Australia to truly succeed.

At this point, it just looks like sideways money and therefore I’m not overly excited about it. But if we do break a little bit higher, then one would have to think that we could make a move all the way to the 0.69 level before it’s all said and done.

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