EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Strengthens Early Monday

EUR/USD Technical Analysis

The euro has fallen during the trading session against the US dollar as the trend line is now being tested yet again. If we can continue dropping from here, the 1.16 level will be tested, which should be significant support based on previous market memory. Anything below there then opens up the possibility of a move down to the 1.14 level and the 200-day EMA. A bounce from here opens up the possibility of testing the 1.1750 range again, but at this point in time, it is worth noting that we’ve struggled holding gains since the FOMC meeting a couple of weeks ago.

USD/JPY Technical Analysis

The US dollar has jumped higher against the Japanese yen in what I can only look at as a Japanese yen problem, because you see it across the forex world, the Japanese yen is slipping. This is almost certainly due to the election results in Japan. Whether or not that sticks, we will have to remain on the sidelines here watching because chasing after this gap is going to be difficult.

The real question is, can we break above the 151 yen level? If we can, then that could lead to something quite a bit bigger. I’ve been bullish on this pair, as you know, although I didn’t have the election factored in, so we’ll see if this truly sticks. But right now, it certainly looks like dips will continue to be bought.

AUD/USD Technical Analysis

The Australian dollar initially did rally during the session, but is giving back those gains. At this point, it looks like we are trying to roll over here as well. And the magic number again is 0.6550. This is an area that’s been like a magnet for price for ages. So we’ll have to see how that plays out. If we break down below there, we could go looking to the 200-day EMA, an area that I think is going to be important to pay attention to as well. Rallies at this point will almost certainly have to deal with the 0.67 level as a major barrier to the upside. So, we’ll just have to see how that plays out.

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