EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Sell Off for Now

EUR/USD Technical Analysis

The euro has risen quite a bit during the early hours on Wednesday again, but at this point in time, I think it’s still just a technical bounce. Really at this point, the 50 day EMA comes into the picture and people will be paying attention to that. But we also have some announcements over the next couple of days that could change the look of this completely. We do have the ISM services PMI number coming out in a few hours.

Well, I don’t think that probably changes too much from the longer term perspective. We have the employment figures on Friday and that could. Ultimately at this point in time, I think you had an oversold euro and an overbought US dollar. You’re seeing that in several US dollar related pairs. And I think ultimately, the profit taking in bounce had to happen, but there is a ton of noise between here and 1.06 that could cause issues.

USD/JPY Technical Analysis

The US dollar is plummeting against the Japanese yen as well, as it is now testing on the 200 day EMA. The pair here, of course, is looking at the possibility of the Bank of Japan might actually have to fight inflation for once. Most traders are not used to that, so it does cause some concern and some confusion. The reality is though, you still get paid to hang on to this pair, so we’ll see how long this lasts. The 200-day EMA, of course, will attract a lot of attention, so I’d be very interested in some type of bounce from here if we get it.

AUD/USD Technical Analysis

The Australian dollar has also rallied a bit during the trading session and now approaches the 0.63 level. This is an area that’s been very difficult to break above, and I think there’s a band of resistance to at least the 0.6350 level. While one can say that this is a very strong recovery over the last couple of days, all you have to do is look at the overall trend to see that, although impressive, it pales in comparison to what’s been going on longer term. So, I think being patient and finding an opportunity to short this pair somewhere just above probably ends up being the way I’ll approach it.

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