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

EUR/USD Technical Analysis

The euro has initially tried to rally during the trading session on Tuesday but gave back gains pretty quickly to show signs of hesitation. I think we continue to bounce around this 1.08 level, as it is an area of significant importance going back multiple months.

With that being said, I also recognize that the so-called Golden Cross might be getting ready to kick off here, and if that’s going to be the case, some traders will look at this through the prism of a long term buy signal. We’ll just have to wait and see how that plays out, but right now, it certainly looks like we are in an area of congestion.

USD/JPY Technical Analysis

The US dollar has pulled back against the Japanese yen after having a nice bounce during the previous session. But at this point in time, I still think there are a lot of questions to be asked out of Japan and the United States both, as far as the central banks are concerned. And with that being the case, it wouldn’t surprise me at all to see this pair go sideways for a while as traders try to sort out who’s going to do what. The Bank of Japan suddenly doesn’t sound as hawkish as it once did, while the Federal Reserve, although people have been begging for them to cut rates, doesn’t look like they are going to do it very quickly either.

AUD/USD Technical Analysis

The Australian dollar, pretty quiet during the trading session on Tuesday as we are trying to find our footing near the 0.6250 level. The area, of course, is a minor area. The real support could be found a little closer to the 0.62 level from what I can see.

And with that being the case, I think you need to recognize that you are closer to the bottom than the top of the larger consolidation between 0.62 and 0.64. I anticipate that this pair is going nowhere soon. I think it’s going to stay in this range. So short-term back and forth range-bound traders may find a home here.

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