EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Strengthens After Trade Deal

EUR/USD Technical Analysis

The euro has plunged during the early hours of Monday as the markets react to the trade deal between the European Union and the United States. Essentially, it looks like we are dropping down to the 1.16 level, which is an area that should be support down to the 1.15 level, especially with the 50 day EMA sitting right in the middle of this range. With this being the case, you have to ask whether or not this is a double top that we are in the midst of trying to form, or if it’s just a return to consolidation.

I think it’s probably a little too early to call it one way or the other, but with that being said, I think you also have to look at this as a scenario where if we do in fact break down below 1.15, then it makes a huge move very possible in the US dollar, not only against the Euro itself, but against most other currencies. If we cannot break this area, then I think we will just continue sideways.

USD/JPY Technical Analysis

The US dollar has rallied a bit during the early hours on Monday, breaking above the 200 day EMA, and now it looks like we’re trying to get to the 149 level. This is an area that I think we could be looking at as a major barrier and if we can break the 149 yen level, then 151 yen would be your next target. Short-term pullbacks are probably buying opportunities, but we do have a Bank of Japan meeting here in the next few days, so I’d be very cautious with this pair right now, although I still like the idea of buying.

AUD/USD Technical Analysis

The Australian dollar has fallen pretty significantly against the US dollar, but at this point in time, we are looking at the 50 day EMA sitting just below as well as the bottom of this channel. So, I think you’ve got a situation where the buyers may come back sooner or later, not necessarily right away, but if the pattern holds, we’re just simply going to test the lower part of the channel and see yet another bounce. I don’t really like shorting this pair until we get below the 200 day EMA, but truthfully buying it is a bit torturous as well. It’s just grinding ever so slowly higher.

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