EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to See Buyers on Tuesday

EUR/USD Technical Analysis

The euro has plunged quite significantly in the early hours on Tuesday as we now approach the crucial 1.06 level. This is an area that begins a massive support level that goes back a couple of years, so I think we are in the realm of possibly looking for a bounce.

Whether or not that happens remains to be seen, but it is obvious that everything is about the United States now. The currency itself, the US dollar, of course, has a correlation across all major pairs, but if you look at the stock markets, they also favor America. So, I think at this point in time, it’s difficult to buy this pair. And any bounce at this point in time would have to be looked at as a potential selling opportunity.

USD/JPY Technical Analysis

The US dollar continues to grind higher against the Japanese yen, but we still face that crucial 155 yen level. Breaking above that would signify the next leg higher and could have traders jumping in, in a bit of a FOMO trade. Remember, this is a massive carry trade as, although the Federal Reserve has cut rates a couple of times now, the reality is you can still collect quite a bit of swap at the end of every day by being long of this pair. Short-term pullbacks continue to offer support, and the floor in this market right now is all the way down at the 150 yen level.

AUD/USD Technical Analysis

The Australian dollar has fallen a bit against the US dollar, although it is sitting just above the psychologically and structurally important 0.65 level. That’s an area that I think should offer support, and we’ll have to wait and see how this plays out, but this currency might be a little bit of an outlier in the sense that the RBA recently had an interest rate decision and decided to sit still, flying in the face of many other central bank decisions. So that might make the Australian dollar, at least for the time being, a little bit more resilient than many other currencies around the world.

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