EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Softer on Wednesday

EUR/USD Technical Analysis

The euro has rallied somewhat significantly against the US dollar during the early hours on Wednesday, but we are starting to see some of the same resistance step into the picture. This is an area right around level 1.11. So, what I am paying attention to is whether or not we can get any hope of a follow through to the 1.12 level or do we pull back towards the 1.09 level?

It is worth noting that we are starting to give back some of the gains, so I think you have to understand that this is a scenario where, although the Euro looks bullish, it also looks like it could be trying to settle into a range.

USD/JPY Technical Analysis

The US dollar has fallen against the Japanese yen yet again, as we are sitting on the 145 yen level. This, of course, is an area where a lot of people will be watching as it’s a previous support and resistance level. And if we were to break down below there, we could see a move down to the 142 yen level. On the other hand, if we turn around and rally, we could go look at 148 yen. But right now, there’s nothing on this chart that suggests the buyers are going to pick things up.

AUD/USD Technical Analysis

The Australian dollar has been all over the place. This might be a little bit of a knock on effect from the interest rate decision coming out of New Zealand overnight. But more importantly, what I see is a market that, although it did rally, is starting to give back some of those gains.

I still think the Australian dollar is in a lot of trouble until the situation between the United States and China gets some type of resolution. After all, Australia  supplies China, which turns around, takes those raw materials, and supplies the United States.

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