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

EUR/USD

The euro drifted a little bit lower during the early hours of Tuesday against the US dollar as we continue to tangle with the crucial 200-day EMA. Furthermore, we are also hanging about the 1.09 level, which of course is an area that has a lot of psychology, but it also has a lot of market memory attached to it. So, with all of that being said, I think you’ve got a situation where we need to look at this through the prism of where the next momentum candle forms.

If we do break to the upside, perhaps breaking above the 1.0940 level, then it’s possible that we could go looking to the 1.10 level above. That being said, this is a market that I think will be very noisy. And there is, of course, also the possibility that the US dollar strengthens. And if we drop significantly from here, then I would anticipate this market goes looking to the 1.08 level.

USD/JPY

The US dollar did pull back a bit against the Japanese yen as the 150 yen level continues to offer a bit of psychology in the market as far as resistance is concerned. And much like in the euro, we are currently testing the 200 day EMA.

The 200 day EMA, of course, is used by a lot of technical traders out there that will determine the trend. So, I do think that breaking above the 150 yen level is going to be crucial. If and when that happens, it probably sends this pair much higher because quite frankly, you get paid at the end of every day to hold on to it.

AUD/USD

The Australian dollar has fallen a bit during the trading session as well as we are below the 50 day EMA now, but above the 200 day EMA as we continue to grind around the 0.67 level. The 0.67 level has been very important over the last couple of days, and it looks like it is still holding as far as its efficacy is concerned for support. The 200 day EMA is closer to the 0.6650 level, and I think that at least at this point is probably your floor.

Anything below there would have the Aussie falling, and quite frankly, I suspect it would have the US dollar strengthening quite drastically against most other currencies. As things stand right now, this looks like a very neutral currency pair, but if we could break above the 0.6775 level, then I think it opens up about another 75 pips to get to the 0.6850 level. Remember, the Australian dollar is highly sensitive to risk appetite, Asia, and global growth, so take all of that into account when you’re trading it.