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

EUR/USD Technical Analysis

The euro has gone back and forth in the early hours of Wednesday as we continue to just kill time right around the 1.14 level. This does make a certain amount of sense. After all, the market had gotten far too ahead of itself recently with the massive move higher and now we need to work off some of that excess froth. Furthermore, we also have the jobs number on Friday and that of course might have people somewhat tentative about putting new positions on, although let’s be honest, most of what’s going on in the market circulates around the latest headline involving the trade wars.

USD/JPY Technical Analysis

The US dollar has rallied a bit nicely against the Japanese yen. It is still in consolidation, but it is starting to show signs of life again. And that, of course, is something that people will be paying close attention to. If we can break above the 144 yen level, then it’s very likely that we have a scenario where we could race to the 145 yen level and then eventually the 50 day EMA. While I recognize that we are most certainly in a negative trend, the reality is that we just bounced from a major support level in an extremely oversold and quite frankly, overdramatic market. So, I am still looking at buying the dip, at least in this area.

AUD/USD Technical Analysis

The Australian dollar rallied initially during the day on Wednesday but has found a bit of a brick wall here at the 200 day EMA yet again. Because of this, I think you have a situation where traders will continue to look for some type of momentum and be willing to take advantage of it, if and when it shows up. A break above the 0.65 level unleashes a leg higher, a breakdown below the 0.6350 level opens up a test of the 50-day EMA and then even possibly the 0.62 level.

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