EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Falls After Tariff Announcement

EUR/USD Technical Analysis

The euro has rallied nicely against the US dollar during early trading on Thursday as we have had straight back up to the 1.11 level. This is an area that’s been important a couple of times recently and therefore it’s not a huge surprise to see the market head back to this region.

I think there is a significant amount of resistance near the 1.12 level as well, but I also recognize 1.09 as support. The market looks as if it is trying to do everything it can to stay within this overall 300 point range and until something changes drastically, I think it is just trying to find its equilibrium.

USD/JPY Technical Analysis

The US dollar has fallen pretty significantly against the Japanese yen, but it looks as if the 145 yen level is going to end up being a bit of support yet again. So, I think we’re still basically bound, but we are testing the bottom of that area. If we were to break down below the lows of the trading session from Wednesday, that opens up a move down to 142 yen, but right now we are still some distance from there. The 148 level above looks like significant resistance.

AUD/USD Technical Analysis

The Australian dollar has gone back and forth during trading on Thursday in the early hours as well, and it does look like the Aussie dollar is probably going to try to take out the 0.62 level, but quite frankly, that’s an area that’s been very difficult for the Aussie to take out in the past.

So, the fact that we have pulled back just a bit from there doesn’t surprise me. I’m actually looking for signs of exhaustion to start shorting, mainly due to the Australian connection to China, as the United States and China continue the trade tariff war.

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