EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar a Bit Soft

EUR/USD Technical Analysis

The euro has rallied a little bit during the early hours here on Monday as we continue to fight the 1.09 level. Keep in mind that the FOMC does have a meeting this week as well as an interest rate decision. So I think we might be a little bit choppy and sideways in the short term, but if we can turn around and break down below the 1.08 level, then that could open up a move down to the 200 day EMA. A break above the high here could move the market to the 1.10 level, followed by the 1.12 level.

USD/JPY Technical Analysis

The US dollar has initially rallied a bit against the Japanese yen only to turn around and show negativity. By showing negativity, the market is likely to continue to see a lot of choppiness in the same range we have been in for about six sessions now. The 149 level tends to be resistant now that it had previously been support, bringing in a bit of market memory.

If we were to drop from here, I’d be paying close attention to the 147 yen level because it is an area that previously had been support. If we break down below that, it opens up the market to dropping down to the 145 level.

AUD/USD Technical Analysis

The Australian dollar has moved higher during the early hours on Monday as we are now trying to get back to the 0.64 level. The 0.64 level is an area that a lot of people will be paying close attention to as it is the top of the overall consolidation range that we had been in, with 0.64 being the resistance and 0.62 being the support.

Right now, it does look like the US dollar is in a little bit of trouble and that does make a certain amount of sense as inflation is coming down in America, but a lot of the leading indicators suggest it may return after a quick dip, so expect further volatility.

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