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

EUR/USD Technical Analysis

The euro has fallen pretty significantly during the early hours here on Tuesday, as we have seen a continuation of the sideways action. With that being said, this is a market that I think continues to be somewhat noisy and somewhat rudderless, if you will. But we do have a range that we seem to be following. We have the 1.16 level offering support right along with the 50-day EMA now. But we have significant resistance near the 1.1750 level, followed by the 1.18 level. While I don’t necessarily expect a big move, I do expect to see continued stubbornness out of the US dollar through the week, really, due to the jobs number coming out on Friday.

USD/JPY Technical Analysis

The US dollar has rallied quite nicely against the Japanese yen, slamming right back into that 148.50 level. The question is, can we take off from here? If we can, it opens up a move to the 151 yen region, perhaps even higher than that. This is a strong candle, and it is a good sign, but the question is, can we follow through on the momentum? That might be a bit more difficult than imagined, but it is worth noting that after we fell apart there, we went sideways. We just sat still. And sometimes markets are about where they won’t go. In this case, they don’t seem to want to go down.

AUD/USD Technical Analysis

The Australian dollar has fallen yet again as it continues to see a lot of weakness and a lot of it just brick wall behavior near the 0.6550 level. At this point, I would anticipate that we could drift a little bit lower through the rest of the week, but I’m not looking for anything major. I think 0.64 is going to be difficult to break through. I haven’t liked the Australian dollar for a while, because even when the dollar was being sold off massively against other currencies, the Aussie was just somewhat strong. Using a little bit of logic, unless something drastically changes, if the US dollar strengthens, the Australian dollar should be one of its biggest victims.

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