EUR/USD, USD/JPY AUDUSD – US Dollar Continues to Be Erratic

EUR/USD Technical Analysis

The euro has gone back and forth during the early hours on Wednesday as we continue to just kill time right at this large round psychologically significant figure. All things being equal, this is a market that I think is very choppy and noisy, but it looks like we are trying to build up some type of stability and perhaps continue to move higher, but we don’t really know yet what Donald Trump’s going to do at the end of the day as far as tariffs. So, I suspect this is probably a very quiet and choppy market, at least in the short term.

USD/JPY Technical Analysis

The US dollar has initially tried to rally against the Japanese yen and then just fell straight from there. We are very much in a range still, and now we are going to have to see what happens next with the tariffs. Keep in mind that in the last couple of days there have been hammers, so if we can break above the top of these two hammers, then the market could go much higher, perhaps testing the 50-day EMA and then the 200-day EMA.

If we were to break down below the candlestick from the Monday session, then it opens up a move down to the 147 yen level.

AUD/USD Technical Analysis

The Australian dollar has rallied pretty significantly in the early hours as well, but let’s be honest here, this is a market that continues to see a lot of back and forth choppiness, with the 0.62 level underneath as support and the 0.64 level above as resistance.

The 50 day EMA is hanging right here, right in the middle of this consolidation area where we find ourselves. So, it does make a certain amount of sense that this could be thought of as potentially fair value. With the tariffs coming at the end of the day, we’ll have to see what happens with the idea of what’s going on in global trade. China specifically, which of course has a major influence on Australia. So, it does make quite a bit of sense that we’re just hanging here right in the middle of the range.

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