EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Slightly Stronger in Early Wednesday Trading

EUR/USD Technical Analysis

The euro has fallen a bit during the trading session on Wednesday in the early hours as we are now below the 1.16 level. If we can continue the momentum, I anticipate that we will go looking for 1.14 underneath, an area that of course has been support previously. I find this interesting because I was told just a few days ago that the US dollar was a thing of the past, but this is typically what happens, once we start to see interest rates cuts actually happening, that suggests there’s something wrong with the economy and people head back to the US dollar. I do think eventually we will break down a bit. Whether or not we collapse, that’s a completely different question.

USD/JPY Technical Analysis

The US dollar has rallied against the Japanese yen to find itself at 148 yen yet again. And of course, by extension, the 200 day EMA. If we can get a daily close, maybe 50 pips above this level, then I think at that point, you’ll start to see more momentum. Short-term pullbacks are possible. Short-term pullbacks are probably going to find buyers near the 50 day EMA, as we have seen multiple times over the last couple of weeks as well. So, I favor buying dips. I also recognize you’ll probably have to be somewhat patient.

AUD/USD Technical Analysis

The Australian dollar, of course, has fallen as well, but sits right at the 200-day EMA, so we’ll have to wait and see how that plays out. But I think there’s a shot that we fall to the 0.64 level. Rallies at this point in time, I look at with suspicion, with the 0.6550 level being an area that I would anticipate being ceiling for the market yet again.

This is a market that has been in a nice uptrending channel for months and has since broken down. The next question is, can we break below the swing low from last week? Because if we do, that would actually confirm a trend change. So, it’ll be interesting to see how this plays out, but it is worth noting that the Australian dollar has been the weakest performer against the US dollar out of all of the currencies I cover.

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