EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to be Mixed

EUR/USD Technical Analysis

The euro has rallied ever so slightly during the early hours on Wednesday, but at this point in time, we are still looking at the CPI numbers coming out, which obviously will have a major influence on where we go next. Furthermore, the market has been in a downtrend for quite some time. And with that being the case, I do think that eventually the sellers will come back and start pushing the Euro back down. The 50 day EMA currently sits right around the 1.0425 level and is dropping and that could be your first barrier followed by the 1.05 level.

USD/JPY Technical Analysis

The US dollar has rallied rather significantly against the Japanese yen as it looks like we are going to test the 50 day EMA. With that being the case, I think you’ve got a situation where traders will continue to watch this very closely, but CPI will have a major influence on what happens next so be aware of that.

The 155 yen level above is a barrier that might be a little difficult to overcome, but it is certainly something that will be on the minds of traders as well. Short-term pullback should continue to see support near the 200-day EMA and just below there at the 150 yen level.

AUD/USD Technical Analysis

The Australian dollar initially tried to rally during the trading session, but gave up gains as the 50-day EMA has caused a bit of a barrier. If we can break above the candlestick for the day, then the 0.6350 level comes into the picture for potential resistance. On the other hand, if we turn around and fall, like it looks like we’re at least trying to, the 0.62 level could be the target that we aim for next. At this juncture, the Australian dollar, much like the euro, is a currency that I’m willing to fade on signs of exhaustion.

For a look at all of today’s economic events, check out our economic calendar.