EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Attempting to Fight Back

EUR/USD Technical Analysis

The euro initially did try to continue higher during the Tuesday session, but has pulled back a bit, which makes a certain amount of sense considering that we are sitting at the 1.15 level. This is a large round psychologically significant figure and an area that will attract a certain amount of attention regardless. So, with that being said, I think you have to look at this through the likelihood of some type of pullback and recovery for the greenback as it has just been overdone.

So, I don’t necessarily think that shorting this is the play right now, but I do think you have to understand that chasing the trade to the upside certainly isn’t going to be the smart move. So, a pullback, even all the way to the 1.12 level would not surprise me.

USD/JPY Technical Analysis

The US dollar is trying to bounce from the 140 yen level, a large, round, psychologically significant figure. And of course, this is a market that is oversold. Whether or not this can continue to the downside remains to be seen. But at this point, I would not be trying to chase the trade to the downside.

As far as buying is concerned, I would like to see the 143 yen level be taken over again by the US dollar before I start getting long. That would at least give me some momentum to follow. We are at a crucial point and an inflection point on the chart, so pay close attention.

AUD/USD Technical Analysis

The Australian dollar initially tried to rally during the day but has given back those gains right at the 200-day EMA in an overbought condition. So, this is very interesting to me. Maybe we may see this market fall from here. Whether or not that happens, like I said with the other pairs, we just don’t know. But at the end of the day, you have to assume that it is very possible. This is especially true if we start to see problems in China.

After all, the Australian economy is highly levered to the Chinese economy. And that, of course, is something that traders are very cognizant of. If we fall from here, the 50-day EMA is at the 0.6288 level, and that could be a short-term target. If we can break above the 0.6450 level, then it’s likely that the uptrend will continue.

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