EUR/USD, USD/JPY and AUD/USD Technical Analysis – US Dollar a Bit Mixed Heading Into FOMC

EUR/USD Technical Analysis

The euro has initially pulled back against the US dollar on Wednesday, but we have turned around to show signs of life again. So, with that being said, I think you’ve got a situation where traders continue to look at this through the prism of a market that is currently stuck between the 1.13 level and the 1.15 level. If we can break out of this range, then we might have a bigger move, but really, I don’t expect much between now and the press conference after the meeting. And even then, we have to wait and see what Jerome Powell says and more importantly, how the market reacts to him.

USD/JPY Technical Analysis

The US dollar has rallied against the Japanese yen, as we may have gotten a little oversold and I am starting to think that we are starting to form some type of bottoming pattern. Now, that doesn’t mean that it’s easy and it doesn’t mean that it won’t fake out a lot of people. But if the Federal Reserve sounds even remotely hawkish or not dovish during the trading session on Wednesday, it’s very possible that this market will go higher. After all, the interest rate differential will continue to favor the US dollar, even if the Fed does start cutting. If we were to break down below the 140 yen level though, that would be like the bottom dropping out.

AUD/USD Technical Analysis

The Australian dollar has initially tried to rally during the trading session but then dropped a bit. At this point, we’ll have to wait and see, but at the end of the day, if we close higher, then I think that’s your signal that we are going to try to get to the 0.67 level. If we close below the 0.64 level, we may have just topped. Again, this is going to be about the dollar, not necessarily about the Australian dollar, although the Aussie dollar has had a bit of a reprieve over the last couple of days due to the US and China situation seemingly starting to soften a bit.

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