EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Slip a Bit

EUR/USD Technical Analysis

The euro initially did fall a bit during the early hours on Monday but then turned around to show signs of a slow rise after hesitation about its drop and now it looks like we are trying to break into this massive resistance barrier that I believe extends all the way to the 1.06 level. The 1.06 level would need to be broken on a daily close for me to really start to think about buying because quite frankly, there are far too many issues in Europe, and I think this is just a relief rally.

If you take your time and let it prove itself you will be much more confident with a move to the upside, because quite frankly, I can see a situation where we rally a bit and then sell off. Keep in mind that we’ve got the Federal Reserve on Wednesday and the ECB on Thursday. So, some of this might be people getting out of their position ahead of that.

USD/JPY Technical Analysis

The US dollar has plunged against the Japanese yen as a bit of a safety trade has been going on due to the various tariff issues in the United States and over the weekend, it was Colombia. Colombia back down, of course, but that still has people concerned, not really knowing what to do with an America that actually looks out for itself first financially. So that has thrown everything into chaos. A market turning around and breaking above the 155 yen level could be a shot higher, but really right now, I think this is probably one you need to be on the sidelines.

AUD/USD Technical Analysis

The Australian dollar did fall initially during the trading session, but it has turned around. I still see a lot of resistance near the 0.6350 level. So, I’d be cautious with that, especially now that the 50 day EMA is sitting there as well and of course, Australia still has to worry about Asia. So as long as that’s the case, I think you’re looking for signs of exhaustion that you can sell into, as the market has been so negative for so long that a little bit of a relief rally was probably necessary sooner or later.

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