EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Slightly Positive in Early Monday Trading

EUR/USD Technical Analysis

The euro has pulled back a little bit during the early hours here on Monday as traders continue to question whether or not the Fed Reserve is going to end up cutting, how much they’re going to end up cutting, how quickly they’re going to end up cutting, et cetera. At this point, we continue to hang just above the 1.16 level, and of course, we have the 50 day EMA racing towards that level. All things being equal, I think this is a situation where traders back and forth here in this area, just kicking the pair around as we are waiting for some type of momentum.

USD/JPY Technical Analysis

The US dollar is ever so slightly positive in the early hours of Monday as the 50 day EMA continues to offer support, with the 200 day EMA offering resistance. The 148 yen level will continue to offer a bit of a ceiling. If we can break above there, then I think we can really start to pick up a little bit, but right now it looks like we’re just going sideways. If we break down below the bottom of the candlestick from the Thursday session, we could drop to the 145 yen level. But remember, the interest rate differential still favors the upside here.

AUD/USD Technical Analysis

The Australian dollar looks a little bit lackluster in the early hours here on Monday as we did rise, but we gave back those gains almost immediately as we are just sitting around the 50 day EMA. The 0.6550 level above continues to offer resistance, and if we can break above there, then I think that would be a very bullish sign. But you can see that we had been in a bit of a channel for quite some time, and now we’re just struggling.

I think this might be the canary in the coal mine, if you will, on what happens with the US dollar, because if it really starts to fall apart here, it probably sees US dollar buying around the world as well. I believe out of all of the major currencies; the Australian dollar is probably one of the least positive. just lackluster. It hasn’t been able to pick its feet up.

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