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

EUR/USD Technical Analysis

The Euro has shot straight up in the air during the trading session to gain over 2 % after the tariffs were announced in the United States. There have been rumblings out of Europe about reciprocal actions, which, in the short term probably causes some pain for the US, but really at the end of the day, Europe only has so many cards to play here. They already tariff most US goods anyways. So, it’s pretty much a one way street.

Furthermore, there’s also the Euro dollar system, which a lot of citizens of Europe may learn all about. So, while this is a pretty strong move, I mean, you certainly can’t deny that we are getting fairly close to a lot of supplies. So, it’ll be interesting to see if this can hold onto this. I don’t necessarily think you should short it right here, but we may get a reversal candlestick quicker than you think.

USD/JPY Technical Analysis

The US dollar has gotten crushed against the Japanese yen, and this has removed all doubts about whether or not the yen could keep up its strength. This one is a little bit different story because quite frankly, the Japanese are more likely than not going to work with the Americans overall. And if that’s going to be the case, then there’s a really good shot that the Japanese continue to see some strength.

Now, a lot of this will come down to the Bank of Japan and what it decides to do. But really at this point in time, I think you have to assume that the downtrend in this pair continues. I’m seeing this across the board with the Japanese yen. It’s not just the US dollar, perhaps a little bit of a flight to safety as well.

AUD/USD Technical Analysis

The Australian dollar initially fell and then skyrocketed. However, I don’t think out of the three currency pairs in this article and video, I don’t think the Australian dollar is the one that’s going to take off. Quite frankly, the Australian dollar still sees a lot of resistance near the 0.64 level. And it is highly correlated to China, which now sees a 34 % tariff on its goods. Yes, it hurts the Americans too. But at the end of the day, if China cannot export to America, that’s off the top of my head. I want to say about 45 to 50% of its exports.  If that happens, then the Australian economy will tumble right along with it.

All things being equal though, this is a scenario where I think we’re just testing the top of the range in most currency pairs right now to see if there’s any follow through. I think less than 24 hours after the tariff announcement, we’re still seeing a lot of panic and indecision. So, I wouldn’t get too excited. This is where traders lose a lot of money.

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