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

EUR/USD Technical Analysis

The euro has rallied a bit during the early hours here on Monday as we continue to see a lot of uptrend pressure in this market from a longer term standpoint, but we have had a nice little pullback in the short term. I do believe that we are in a scenario where the 1.16 level continues to be a major support level down to the 1.15 level. On the upside, I believe the 1.18 level above is a bit of a ceiling.

USD/JPY Technical Analysis

The US dollar gapped lower against the Japanese yen at the open here on Monday, hanging around the 200 day EMA, but rallied enough to fill that gap and then started falling again. I do suspect that this is probably a buy on the dip market, but I’m not willing to come into the picture right now and just simply jump in with abandon. I think you will get an opportunity to buy at a lower level, but you will have to be very patient between now and then.

AUD/USD Technical Analysis

The Australian dollar has rallied during the session against the US dollar, bouncing from the 50-day EMA. Quite frankly, this market also has some work to do, and it is worth noting that there is a bit of a channel, although it’s getting a little bit sloppier over the last couple of weeks than it had been, with maybe a little bit of uncertainty thrown in.

The 0.6550 level is an area that a lot of people have been looking at as a magnet. And I think once we get to that area, if we show signs of exhaustion, you might be looking for a short-term selling opportunity. The Australian dollar has been a laggard against the US dollar in terms of comparing it to the euro or the pound, and clearly the Aussie is less favored than many other currencies out there.

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