EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to See Choppiness

EUR/USD Technical Analysis

The euro initially spiked during trading on Tuesday, but it looks like it is going to give back some of the gains. All things being equal, this is a market that I think continues to see a lot of noisy behavior. And I think it continues to hang around the 1.09 level for some type of anchor to price. We’ll just have to wait and see. If we break down below the 1.09 level, I think the next major support level is down at 1.08.

USD/JPY Technical Analysis

The US dollar has given back its gains a bit after initially trying to rally against the Japanese yen on Tuesday, but it also looks as if we are in the midst of some type of bottoming pattern. So, it’ll be interesting to see in this market. If we can break above the 148 yen level, then we could go looking to the 150 yen level where the 50 day EMA currently resides.

Keep in mind that the Bank of Japan continues to have an ultra-loose monetary policy while the Federal Reserve, at least for the time being, is having to worry about a inflationary environment. And that, of course, could keep monetary policy a little tighter in the United States than most traders had thought originally. So, this could put upward pressure on the market eventually.

AUD/USD Technical Analysis

The Australian dollar has shown itself to be somewhat resilient over the last 24 hours as it is trying to find its floor near the 0.60 level. The 0.60 level of course is a large round psychologically significant figure and an area you would expect to bounce from. If we do rally from here, I would pay particular attention to the 0.62 level, which is an area that previously has been resistance.

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