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

EUR/USD Technical Analysis

The Euro has rallied ever so slightly during the early hours on Tuesday, but really at this point in time, I think this is a situation where traders are just simply going back and forth. After all, this is a market that has seen quite a bit of selling pressure, really going back several months.

And at this point in time, we are trying to sort out whether or not the market is in a consolidation phase before going lower, or if we’re trying to build some type of base. Ultimately, I think this is a situation where you have to treat it as a range at the moment, but I do favor shorting signs of exhaustion after rallies.

USD/JPY Technical Analysis

The US dollar is trying to rally a bit against the Japanese yen. But at this point in time, it continues to hang around the 200 day EMA. We would have to break above the 153 yen level to really kind of pick up momentum. And even then, I think the 50 day EMA above continues to offer a bit of a resistance barrier.

The interest rate differential certainly still favors the US dollar, but with Jerome Powell speaking in front of Congress during the session, I would expect choppy volatility more than anything else. As things stand right now, the 150 yen level looks to be a bit of a floor.

AUD/USD Technical Analysis

The Australian dollar has rallied a little bit against the US dollar, but it still sees the 50-day EMA above as a significant barrier. If we could break above that barrier, then it’s possible that we get to the 0.6350 level where I expect to see even more resistance. Underneath current trading, we have the 0.62 level as a bit of support, followed by the 0.6150 level.

Again, I think the Australian dollar is more or less going sideways as we try to determine whether or not the US dollar is going to strengthen again overall. Quite frankly, at this point, I’m going to trade this very much like the Euro. I’m just going to fade rallies that show signs of exhaustion.

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