EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Softens a Bit in Early Trading

EUR/USD Technical Analysis

The euro rallied a bit in the early hours here on Monday to reach the 1.18 level. The 1.18 level is a large, round, psychologically significant figure that, of course, has been important multiple times. And if we can break above here, it opens up a move to the 1.19 level, possibly even the 1.20 level. Short-term pullbacks will continue to find plenty of momentum, I think, perhaps trying to break out, but there are a lot of questions out there about the risk appetite, and I think that will continue to be reflected in this pair. If we break down below the 1.17 level, we probably just sit right in that consolidation area for a while.

USD/JPY Technical Analysis

The US dollar initially tried to rally against the Japanese yen, but gave back the gains, and we find ourselves just sitting here. At the 200-day EMA, the Friday candlestick was a hammer. It looks like we might try to form some type of negative shooting star candle. So, I think this is a market that just really doesn’t have anywhere to be at the moment, with the 146 yen level offering support and the 149 yen level offering resistance.

AUD/USD Technical Analysis

The Australian dollar dropped a little bit in the early hours here on Monday, but it looks like it is trying to find support. The 0.6550 level is an area that’s been like a magnet for price. So, I’m not overly surprised that we could drift down there. The 50 day EMA sits there as well, and at this point, if you’re looking at the latest move higher, you could make an argument that the 38.2 % Fibonacci retracement level is offering support, but I think ultimately this is about the US dollar and not really about the Australian dollar. So, pay attention to the other pairs. They’ll tell you which direction this one wants to go.

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