EURUSD USDJPY AUDUSD – US Dollar Stabilizes in the Early Monday Hours

EUR/USD

The euro has fallen slightly in the early hours on Monday, but quite frankly, I think this is a market that’s just more or less killing time at this point. All things being equal, this is a market also that will continue to see a lot of volatility, but that volatility will be in the process of trying to figure out whether or not we are going to dance around in this range. The 1.12 level below and the 1.15 level above are your boundaries. And right now, I think we will probably hang out here trying to sort out the next move.

USD/JPY

The US dollar has been relatively flat against the Japanese yen as we continue to try and find a base in the dollar against the yen.  As we had gotten oversold, it’s clear that the 140 yen level will continue to be very important. And therefore, I think a lot of traders will be watching that level very closely if we get anywhere near it again. On a break higher, then I think we go looking to the 146 yen level. That’s where the previous support level is. And I do think that given enough time, we very well could break above there and go looking at the 50 day EMA followed by the 200 day EMA. The interest rate differential still favors the United States and with the Federal Reserve likely being forced to stay somewhat hawkish. It does make a certain amount of sense that eventually we go back to interest rate differentials once we start to look past the tariffs a little bit.

AUD/USD

The Australian dollar continues to hang around the 0.64 level, an area that looks to be very important as it has offered pretty significant resistance over the last week or so. And then again, a couple of months before. We also have the 200 day EMA right here as well.  And that of course is a technical indicator that a lot of people will be paying close attention to. So do keep that in mind as this market continues to be very stubborn, but quite frankly, very tight. I don’t know if it’s going anywhere quite yet. What we want to see is an impulsive candlestick in one direction or the other, something with a bit of size when we close.