EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Surges After Tariff Announcement

EUR/USD Technical Analysis

The euro plunged as the tariffs in the United States on various goods around the world, specifically Canada, Mexico and China for now, but eventually Europe, are starting to come to fruition. With that, the Euro absolutely plummeted at the opening, although it is starting to recover a bit. It’ll be interesting to see how this plays out, but right now I think a bit of a recovery and then perhaps more selling down the road is what we are looking at.

We have a massive gap to fill, and we will eventually fill that. But I think once you get above the gap, somewhere near the 1.04 level, you run into all of the same problems we had to begin with and therefore the euro remains weak.

USD/JPY Technical Analysis

The US dollar initially launched higher against the Japanese yen but turned around to show signs of weakness again. With that being said, I think we’re just in a bottoming pattern, and we are trying to sort out what to do next. There is a little bit of a run to safety in the form of buying the Japanese yen, but ultimately, I think the US dollar will continue to go much higher against quite a few currencies, with the interest rate differential between the United States dollar and the Japanese yen being a major driver here to the upside.

AUD/USD Technical Analysis

The Australian dollar did initially gap lower, but it has turned right back around to show signs of life again and I think this is going to be a lot like the Euro. If the market rallies a bit, then I think you’re looking to sell this pair again, somewhere starting around the 0.62 level and extending to about the 0.6250 level.

The Australian dollar, of course, will continue to suffer at the hands of a weak Chinese economy, and of course, a lot of concerns out there about tariffs slowing down global trade, which directly influences a commodity-lead economy like Australia.

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