EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Slumps in Early Trading

EUR/USD Technical Analysis

The euro has rallied a little bit in the early hours here on Tuesday as we continue to threaten the 1.17 level. The market did react positively to the 1.16 level as support. So, it does suggest that we are, in fact, still in the same overall uptrend. The 1.1850 level above is a barrier that I think perhaps the bulls will try to run this market to. If we fall from here, the 1.16 level should offer support again, but after that, you have the 50-day EMA hanging around the 1.15 level. And I think both of those are potential support levels.

USD/JPY Technical Analysis

The US dollar tried to rally, but it’s struggling here at the 200 day EMA against the Japanese yen. I do still believe that eventually the US dollar will break out against the yen, but I think we’ve got some work to do. At this point, I’m not looking to get involved anymore unless we get a little bit of a pullback or breakout above the recent high. The 50 day EMA might be an area of interest at 146 yen. Keep in mind that you do get paid to hang on to this position, so interest rates still favor longs.

AUD/USD Technical Analysis

The Australian dollar just continues to churn. There’s not much to say here other than the 0.6550 level continues to be a magnet for price in a market that just has nowhere to be. With that being the case, I think you have to be somewhat cautious about getting too big in this market. Although I suppose you can make the argument it favors the upside, it’s more of a grind than anything else. If you like slow grinding markets, the Australian dollar is going to be the way to go. We are sitting just above the 50 day EMA, so that’s worth paying attention to. And if we were to break above the 0.66 level, then we could go looking to 0.67.

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