EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Softens Ahead of FMOC

EUR/USD Technical Analysis

The euro has risen a bit during the early hours on Wednesday as we are waiting for the FOMC meeting to come out of the United States. Because of this, the market is likely to continue to hang on every word of the statement and the press conference coming out of the United States to give us a bit of a heads up as to where we might go. The euro obviously has a lot of resistance near the 1.16 level, so you must pay close attention to that region. Breaking above there does kick off a larger buy and hold type of run.

USD/JPY Technical Analysis

The U.S. dollar has pulled back just a bit during the trading session on Wednesday in the early hours as well, which makes a certain amount of sense considering we are hanging around the 50 day EMA and the 145 yen level, which is an area that’s been important multiple times. On a pullback from here, I think there is plenty of support near the 142 yen level, assuming we even dropped that far. Remember, the interest rate differential continues to favor the upside, but there are a lot of questions asked about safety.

AUD/USD Technical Analysis

The Australian dollar has risen just a bit but can’t get back to that crucial 0.6550 level. If we were in fact going to break out to move to the upside, we need to close above there on a daily close. We are in the midst of a channel, and we are following this channel quite nicely. But really at this point in time, it’s just buy on the dip for short-term trading. That’s about all I see here. If we break down from here, the 0.6430 level is an area that probably causes a bit of support, as the 50-day EMA as well as the 200-day EMA currently reside there.

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