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

EUR/USD Technical Analysis

The Euro has dropped a bit during the early hours on Tuesday as the 1.05 level continues to offer a bit of a barrier. The market is sitting just above the 50 day EMA though. And that of course is a very bullish sign if it shows hesitation. Nonetheless, I think even that probably doesn’t override the fact that we have been in a downtrend for so long.

And of course, the European Union has a whole plethora of issues. The United States is likely to continue to strengthen its economy. And of course, we are likely to see inflation return to the United States from everything that I’ve seen. So I do believe that the Fed will stay tighter for longer and therefore it will put a bit of a lid here on the euro.

USD/JPY Technical Analysis

The US dollar has rallied a little bit against the Japanese yen as we are trying to find some type of bottom here in a market that has seen Japanese yields rise and that’s a lot of what’s going on here. Whether or not the Japanese actually have to start fighting inflation remains to be seen, but if we can get back above the 200 day EMA, you could be in the process of forming a double bottom.

The 150 yen level below, I think, is the floor in the market at the moment. If we were to break that, that could change a lot of things.

AUD/USD Technical Analysis

The Australian dollar is a bit back and forth after the RBA went ahead and cut by 25 basis points its interest rate overnight, but the press conference and the statement weren’t quite as dovish, so we’re kind of hanging around in limbo here.

If we fall below the 50-day EMA again, which is just above the 0.63 level, I think at that point in time, you start to see the pressure pick up on the Aussie again. On the other hand, if we do rally from here, breaking above the 0.64 level would be the first sign that perhaps the bounce has enough momentum to continue going higher.

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