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

EUR/USD Technical Analysis

The euro rallied rather significantly during the trading session on Wednesday in the early hours, as we are now above the 200-day EMA. The question is can we continue, but it certainly looks like we’ll give it the “old college try”. At this point, it looks like the US dollar is getting hammered via interest rates falling in the United States, which of course has people very interested in trying to get into other currencies. The question now, of course, is “Will this stick?” Right now, it looks like it will, so short-term pullbacks, I believe, will end up being buying opportunities, especially once we get closer to that 1.06 level.

USD/JPY Technical Analysis

The US dollar has fallen a bit against the Japanese yen, as we continue to pay close attention to the 148 to 149 region as support. So, I think it’ll be interesting to see how this plays out because if we break down below the 148 level, then I do believe at that point in time the US dollar will drop pretty significantly, perhaps falling all the way back down to the 140 level.

Nonetheless, this is still a market where you’re going to be paying a swap at the end of every day if you do, in fact, short it. So not my favorite trade, but it’s definitely one that could come about.

AUD/USD Technical Analysis

The Australian dollar initially fell, but then turned around to rally quite nicely, and it looks like we are going to challenge the 0.63 level. The 0.63 level I think continues to be a major factor in what’s going on. If we can break above there, and by extension the crucial 50 day EMA, then I do believe that it is probably only a matter of time before we go to the 0.64 level. At this point the Australian dollar is probably getting a little bit of a reprieve because of the dollar, maybe not necessarily because of the Aussie itself.

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