EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Mixed in Early Action

EUR/USD Technical Analysis

The euro has rallied a bit against the U.S. dollar, but it is banging up against that crucial 200 day EMA and the 1.09 level. It’ll be interesting to see how this plays out because this is an area that could be a bit of a headache for traders.

Furthermore, we have the US elections over the next 24 hours, the election results might not be out there for a good week or two, but we’ll get a general idea about Congress. So that could cause a lot of noise in the greenback overall, which obviously plays out here in the euro. A rally at this point in time will find some resistance above at the 50 day EMA, and underneath it, the 1.0850 level.

USD/JPY Technical Analysis

The US dollar has pulled back a bit against the Japanese yen during the trading session on Monday. And at this point, I think we have to look at the 150 yen level as a significant support level. And that assumes that we even get down there, we could see some type of move like that late on Tuesday, going into Wednesday morning based on election results. But then again, who knows?

It is literally a guessing game at this point. The one thing that I do know is that we have an interest rate decision on Thursday in the United States, and that will have a major influence on what happens next. Perhaps not the interest rate decision itself, because it is expected to be 25 basis points, but it will be the statement afterwards.

AUD/USD Technical Analysis

And over here in the Australian dollar, we gapped a little higher, but since then, we’ve kind of just petered out right around the 0.66 level. This is a large round psychologically significant figure, but it’s not an important one. So, I think at this point in time, we could drift a little higher, but I’m not looking for big moves. In fact, this week is going to be all about trying to get some type of clarity with the United States, which is going to cause havoc in the Forex world.

If I can press upon you one idea, it’s that this week is not a good one to trade, and even if you do find yourself needing to gamble in the forex markets, do so with a smaller than usual position size. For example, I have told some clients 20% of your usual position size is probably what you should be doing, just simply because there will be a lot of erratic moves.

For a look at all of today’s economic events, check out our economic calendar.