EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Trying to Fight Back After Sell Off

EUR/USD Technical Analysis

The euro has initially rallied against the US dollar, but it does look like it’s giving back some of those gains in signs of exhaustion. Quite frankly, this is a market that’s been in an uptrend for quite some time, but over the last couple of months it has been a little lackluster. What’s been particularly telling is that after the Federal Reserve cut interest rates, the market initially shot higher but then turned around and gave back all of those gains. Now we have the 50-day EMA and an uptrend line that we’re watching very closely. If we break below 1.16, that would be a very bad turn of events for the Euro.

USD/JPY Technical Analysis

The US dollar has fallen against the Japanese yen in early trading as we are just below the 149 yen level, which is probably not a huge surprise, considering that this is a market that has been consolidating for a while. We broke out, now we’ve pulled back, so the question is, can we close at the end of the day above 149 yen? If we do, that’s a pretty good sign for the dollar and it could mean that we’re going to the 151 yen level. On the other hand, if we continue to fall from here, the 200 day EMA presently at the 147.86 level is probably the next support level.

AUD/USD Technical Analysis

The Australian dollar has shown itself to be a little bit positive during the trading session, although nothing major, but we are trying to bounce from the 0.6550 level, an area that we return to time and time again, and it looks like it’s going to remain somewhat important. With that being the case, I’ll be watching the 0.66 level. If we can break above there, then we could make a run back towards the highs of 0.67.

If we break down below the 0.65 level, things get a little dicey there. Remember, the Australian dollar was one of the weaker performers against the US dollar during the last several months. So, it’ll be interesting to see how this plays out. If it really starts to show weakness, then you might have a situation where things truly accelerate to the downside.

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