EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Grinds Against Others

EUR/USD Technical Analysis

The euro has pulled back just a bit during the early hours on Tuesday as we continue to grind back and forth. This is a market that got a little bit ahead of itself in my estimation, and now it appears that we are trying to work off some of the excess froth from that shot higher. It’ll be interesting to see how this plays out because the trade tariff panic seems to be settling down. And that’s a lot of what happened here.

Eventually, we have to come to some type of resolution. So, it is interesting that we are sitting right around the 1.14 level, which is right in the middle of consolidation between 1.15 and 1.13 that we have seen over the last couple of weeks. With that being the case, I think you have a scenario where traders, at least for now, will be focusing on range-bound short-term systems.

USD/JPY Technical Analysis

The US dollar has rallied a bit against the Japanese yen during early hours on Tuesday as we are clawing back some of the losses from the Monday session. If the market were to break above the 144 yen level, then it’s likely that the market could go much higher, perhaps reaching the 50 day EMA, which is closer to the 146.50 yen level. Underneath current levels we have massive support to be found at the 140 yen level and I do think that the interest rate differential is starting to catch the attention of traders.

AUD/USD Technical Analysis

The Australian dollar did try to break higher, only to turn around and fall back to the 0.64 level. At this juncture it looks like the market is still indecisive as we are just going back and forth in this area around the 200 day EMA, but given enough time, I think that if we could break down below the 0.635 zero level, then we will get a more significant correction, perhaps falling back to the consolidation that we had been in previously. If we break above the 0.6475 region, then I think we will probably continue higher for a longer term move.

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