EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar a Bit Mixed in Early Tuesday Trading

EUR/USD Technical Analysis

The Euro has rallied ever so slightly during the trading session on Tuesday as we are sitting near the 1.09 level and, perhaps more importantly, the 1.0950 level, an area that was a swing high just a few months ago. At this point, we are a little overextended, so we’ll have to wait and see how this plays out because I would like to see a little bit more of a pullback before the market takes off to the upside, but we also have a central bank meeting in the United States this week.

So, with that, I think you have to assume that by the end of the day on Wednesday, we may have a little bit more clarity as to what the Federal Reserve is thinking. That being said, it is typical for Jerome Powell to make a mess of the market. So be aware of that. Short-term pullbacks, I think, are supported all the way to the 1.08 level.

USD/JPY Technical Analysis

The US dollar has rallied quite nicely against the Japanese yen as we are approaching the crucial 150 yen level. If we can break cleanly above there, it could kick off a bigger trade. And I think that the catalyst here is going to be the FOMC and Bank of Japan meetings, both of which happen Wednesday. So, this could be a wild pair over the next 24 hours, maybe 48 hours or so.

AUD/USD Technical Analysis

The Australian dollar has pulled back just a bit during the trading session on Tuesday and the 0.64 level continues to be a little bit of a ceiling. Now, if we can break above there cleanly and get a daily close well above there, then I think it could change things, at least for the time being. All things being equal though, we are still technically in the consolidation area that we’ve been in between the 0.62 level and the 0.64 level.

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