EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Falls Hard in Early Tuesday Trading

EUR/USD Technical Analysis

The euro has rallied rather significantly against the US dollar in the early hours on Tuesday as we now find ourselves in that pocket that I’ve been talking about for a while between 1.05 and 1.06, this area probably will end up being rather resistive. So, this is an impressive move, but it’s really not until we get above the 1.06 level that I feel that we have escaped from the overall downtrend. It is worth noting that the 200-day EMA is right there as well. So, while we’re getting there, I’m not quite ready to pull the trigger.

On a move above the level 1.06, we could see the euro go to 1.09. On the other hand, if we turn around and start falling again, you may have to keep an eye on the 50-day EMA as it could be a technical support level that a lot of people will be paying attention to.

USD/JPY Technical Analysis

The US dollar, of course, has fallen against the Japanese yen, and it now looks like we’re going to fall pretty significantly. With that being said, I think it’s probably only a matter of time before we drop to the 145 yen level, despite the fact that you’re swimming uphill from an interest rate perspective.

Nonetheless, this happens from time to time, and therefore, traders are looking to short this pair, as we have now confirmed a change, at least on one of the two criterias of trend. Whether or not that ends up being the longer term remains to be seen, it does look like we will make a move towards 145.

AUD/USD Technical Analysis

The Australian dollar has fallen initially only to turn around and show signs of life, but the Australian dollar out of the three currencies is by far the weakest. So, I don’t pay too much attention to this one, but I am looking to short the Aussie dollar on some signs of exhaustion after a move higher. We don’t really have it yet, so I’m pretty ambivalent when it comes to the Aussie against the greenback.

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