EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Slips in Early Trading on Monday

EUR/USD Technical Analysis

The euro rallied a little bit during the trading session on Monday in the early hours, but we are still well within the trading range that we have been in. So, I don’t know if I read too much into it other than we aren’t leaving the trading range, but that in and of itself might be reason enough to get involved. After all, we’ve been trading between 1.08 and 1.0950 for a couple of weeks now, and it looks like we are going to stay here as the US dollar just can’t quite strengthen enough to get things going.

USD/JPY Technical Analysis

The US dollar has rallied significantly against the Japanese yen to touch the 150 yen level, but it’s not until we close above there that I start thinking about going long in this pair. That doesn’t mean it can’t happen, it might be a Tuesday or Wednesday thing, but right now it certainly looks like we are going to continue to see a lot of resistance.

If we break down below the 148 yen level, then I start to look at the downside, perhaps reaching 146.50 and then eventually 145. I do think we’re at a major inflection point. So, the dollar against the yen is something that I am most certainly watching at the moment.

AUD/USD Technical Analysis

The Australian dollar has rallied a bit during the trading session on Monday, but really at this point in time, the market is testing the 50 day EMA, and it doesn’t seem like it’s ready to break above there. Even if it does, we would still very much be trading in the middle of the same range that we’ve been in for a while between the 0.64 level above and the 0.62 level underneath. Quite frankly, the Australian dollar is one of my least favorite major currencies against the greenback. And you can see why based on the first three months of the year, just simply going nowhere.

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