Forex Forecasts – Greenback Momentum Tests Key Support and Moving Averages

EUR/USD Technical Analysis

The Euro initially tried to rally during the trading session on Monday, but it is starting to give back some of those gains, so I think we’re still stuck in that same consolidation area that we had been in for a while. If that’s going to be the case, then I’m looking for short-term trades. Signs of exhaustion are selling opportunities, but not necessarily for a longer-term move. That being said, if we were to break down below the 1.1350 level, then I believe it does end up being a selling opportunity for a bigger move. But in the meantime, I think the best we can do is just look at short-term, little micro movements.

USD/JPY Technical Analysis

The US dollar has rallied against the Japanese yen. That’s not a huge surprise considering we’ve been in an uptrend for what seems like an age at this point. With the 161 yen level offering support just below and the 50-day EMA racing to get there, I think this is a good sign that eventually traders are going to push this market past the 163 yen level. I’ve been long of this pair for quite some time. I add on dips in small increments, and it continues to work out quite well.

GBP/USD Technical Analysis

The British pound is pretty noisy here during early trading on Monday as we are dancing around the 200-day EMA, so it’s probably not a huge surprise. We also have the 50-day EMA here as well, so that also causes a bit of noise. The market looks like it is trying to pick a longer-term direction, and as we are in an area of inflection, I think what you’re looking for is some type of impulsive candle in one direction or the other to give you an idea as to where the momentum swings. This is probably all about the US dollar and very little to do with the British pound, so watch other currency pairs to give you a little bit of a heads up.

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