EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Recovers Early on Monday

EUR/USD Technical Analysis

The Euro initially did try to rally a bit during the early hours here on Monday, but gave back quite a bit of the gains to show signs of hesitation. With that being said, I think you’ve got a situation where traders are going to continue to watch the 1.16 level as a potential support level. If we break down below there, we have the 50 day EMA sitting just below there as well. Anything below that level, I think, opens up the trap door for further selling. To the upside, we have the potential double top and the 1.18 level in general offering resistance. So that will be worth watching as well.

USD/JPY Technical Analysis

The US dollar has rallied a bit against the Japanese yen as we continue to threaten that 148 yen level and, by extension, the 200-day EMA. We do have CPI numbers coming out during the day on Tuesday, and that probably gets people moving. But really, at this point in time, this looks like a market that’s trying to find an excuse to go higher. I think pullbacks continue to be buying opportunities, which makes sense considering the interest rate differential continues to favor the United States anyway.

AUD/USD Technical Analysis

The Australian dollar has rolled over again during the early hours here on Monday, as we are now threatening the 50 day EMA. If we break down below the 50 day EMA, then we have a very real chance of breaking down to the 200 day EMA and then the 0.6450 level. At this point, it looks like the Australian dollar is something you fade on rallies. And that started to be the case a little while ago, maybe a couple of weeks ago.

And it just hasn’t really picked up momentum since then. So, I think at this point, the Aussie dollar looks quite a bit in the realm of being a threatened currency. I don’t think it’s going to melt down. I just recognize that it is likely to be a situation where if it gets a little extended to the upside, there’ll be plenty of sellers willing to get involved.

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