EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Show Strength Ahead of Fed

EUR/USD Technical Analysis

The euro has fallen a bit during the trading session here on Wednesday as we wait for the Federal Reserve and its interest rate decision. That being said, it is worth noting that market participants have been pretty bullish on the US dollar to begin with, so unless they say something crazy, I suspect we will continue to see the downtrend continue. I would expect a lot of volatility later in the day though.

USD/JPY Technical Analysis

The US dollar is somewhat neutral against the Japanese yen as we are going through the morning in New York, but the 155 yen level seems to be offering a bit of support. Underneath, we have the 153.50 yen level that has offered support multiple times.

The 157 yen level above is significant resistance, so breaking above that could really get this market moving higher. Remember, the interest rate differential still favors the United States and unless they do something crazy or suggest that a rate cutting cycle is coming, I anticipate that this pair will eventually go looking for higher levels.

AUD/USD Technical Analysis

The Australian dollar continues to fall apart. This is a bit of a double whammy as you have to worry about the Chinese data right along with the interest rates in America being higher for longer. There are a lot of concerns about tariffs, so that doesn’t do a lot for Australia either. So with all of this, I think that short-term rallies continue to get sold into, and I do think that we go lower given enough time.

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