EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Mixed but Strong

EUR/USD Technical Analysis

The euro has fallen a bit during the early hours on Wednesday as we are testing the 1.05 level after the CPI numbers in the United States came out at 0.3% month over month and now as expected it shows that we do in fact have a certain amount of sticky inflation in the United States. So the question then becomes what does the Federal Reserve do in the future?

They are expected to cut 25 basis points in the month of December, but that might be it and I think that’s what the market’s trying to sniff out here. As things stand right now, it looks like a very range-bound, short-term, back-and-forth type of setup.

USD/JPY Technical Analysis

The US dollar has been all over the place against the Japanese yen, and therefore, it looks like we’re at a bit of an inflection point. If we can break above the highs of the day, I suspect that the US dollar will climb much higher. That is what I anticipate, but until I get that sign, I’m not really willing to put money to work. But it is worth noting that the 50-day EMA seems to be at least trying to hold as support. The upward trajectory could send this market looking towards 155 yen.

AUD/USD Technical Analysis

The Australian dollar plunged to hit the 0.6350 level, an area that’s been important multiple times, and therefore, I think you need to look at it through the prism of whether or not that holds. If it breaks down, then we go looking to the 0.63 level. Anything below the 0.63 level could open up the floodgates to more selling.

I do think Australia is in trouble, but I don’t know if that that move happens right now. What I prefer is to see a little bit of a bounce then I can start shorting. A bounce with an exhaustion candle, for example, especially near the 0.65 area would be ideal. But right now I think we’re just bumping along the bottom.

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