EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Mixed Overall but Returns to Strength in General

EUR/USD Technical Analysis

The euro initially did try to rally just a touch in the early hours here on Monday, but you can see we are struggling with staying above the 1.16 level. At this point, I am watching the 1.15 level underneath. If we were to break down below there, I think this is a situation where we would go looking at the 200 day EMA, perhaps even breaking down and changing the trend.

You can see that a major trend line has been broken up a couple of times now, not only the one that we just broke a few days ago, but there was one before that was quite a bit steeper, which was broken and even retested before falling. So, this looks like a market that is trying to break down. I continue to fade rallies.

USD/JPY Technical Analysis

The US dollar has gapped a little bit higher against the Japanese yen. It’s given back some of the gains initially, though I still think this is a market that goes higher for quite some time. And I recognize that the ¥149 level is an area that I think ultimately ends up being a support level, especially with the 50 day EMA coming toward it and the fact that it is the top of a gap. So we’ll just have to see how that plays out. Either way, this is a market that I’ve liked for quite some time. I’ve been collecting the swap at the end of every session, and I plan on continuing to do that.

AUD/USD Technical Analysis

The Australian dollar is basically sitting right at the 200 day EMA after gapping higher, which of course is a bullish sign. But ultimately, this is a market that’s still in a range and has been for some time. We are below that crucial 0.6550 level, an area that’s important and like a magnet for price for some time. So, all things being equal, this is a market that I still think has a little bit of an overhang. So, I’m looking to fade short term rallies that show signs of exhaustion. Although I’m not looking for a big move at the moment.

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