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

EUR/USD Technical Analysis

The euro has gone back and forth during the trading session in the early hours of Wednesday. This, of course, is a market that I think is in flux at the moment, but I also recognize that the 1.13 level offers a little bit of support. It’ll be interesting to see if we can break down below there, because if we can, then this would be a lower high in my estimation. And we could very well dig right back into the previous consolidation area below the 1.12 level that the market had followed for roughly three years.

And with that being said, you would also have to be cognizant of the fact that we had broken down below the bottom of it at the end of 2024 and the beginning of 2025, only to turn around and shoot straight up in the air. So, the question for me at this point is, are we going to repeat that action by jumping out of the consolidation only to jump back into it? Only time will tell, but rates in America are going to stay stout, and that sooner or later should be good for the dollar.

USD/JPY Technical Analysis

The US dollar has been somewhat sideways against the Japanese yen during the trading session on Wednesday as we threatened the 145 yen level, which of course is a large, round, figure but an area that has been important more than once. The 50 day EMA is dropping towards that 145 yen level, so getting over that indicator would be very bullish.

In the short term, I think we are just simply going sideways, waiting to see what happens next. I also recognize that the 142 yen level is an area that a lot of people would look at as important. And if anything, I think that a breakdown below there has us testing the previous triple bottom at 140 yen.

AUD/USD Technical Analysis

The Australian dollar has dropped a little bit during the early hours against the US dollar, although we have bounced since the beginning of the session. The 200 day EMA looks as if it is trying to offer support underneath, right along with the 0.64 level, the 0.635 zero level underneath there is the floor in the area that I think is the current consolidation. The Monday candlestick, which was Memorial Day in the United States, being broken above would be a very bullish sign and could open up the possibility of a move up to 0.67.

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