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

EUR/USD Technical Analysis

The euro rallied slightly against the US dollar on Wednesday in the early hours as we continue to see traders bet on the Federal Reserve to cut interest rates. That being said, we also have to keep in mind that market participants will be paying close attention to the double top near the 1.18 level. So, with that being said, I think you’re in a situation where we could see a little bit of a pullback into consolidation.

USD/JPY Technical Analysis

The US dollar has fallen a bit in the early hours here on Wednesday against the Japanese yen, but we’re still very much in that same consolidation region that we had been in previously. So, with that being the case, the market is probably going to be one that is somewhat sideways, more than anything else. The 50 day EMA underneath should continue to offer support, and the 200 day EMA just above offers a bit of resistance. But if we can break above the high of the Tuesday candlestick, then I think the US dollar will continue to rise.

AUD/USD Technical Analysis

The Australian dollar has rallied slightly in the beginning of the Wednesday session as well, but we are struggling at that same previous trend line that seems to have a lot of market memory attached to it. Furthermore, the 0.6550 level has been an area of interest for a lot of traders in both directions. So, I don’t think it’s too much of a surprise that the market finds itself just hanging out here. With this being the case, I think we’re basically at fair value, but we do look a little heavy above. We’ll just have to wait to see. I suspect it’s probably short-term range-bound trading on lower timeframes that most traders will be looking to.

For a look at all of today’s economic events, check out our economic calendar.