US Dollar Gains Early on Monday – Technical Analysis for EUR/USD USD/JPY and AUD/USD

EUR/USD Technical Analysis

The euro fell just a bit during the early hours on Monday as we continue to see a certain amount of choppiness. This does make sense because after all, it’s Christmas week, and therefore I think you’ve probably got a certain amount of back and forth by people squaring up positions.

Nonetheless, it most certainly looks like a market where you should be shorting rallies that show signs of exhaustion. The 1.03 level underneath is significant support, and anybody will be interested in shorting this market. If we break down below that level on a daily close, it will be a clear sign of the euro losing strength yet again.

USD/JPY Technical Analysis

The US dollar has rallied quite nicely against the Japanese yen, and it does look like we are ready to go higher. With this being said, I like the idea of the US dollar perhaps breaking out and trying to get to the highs again. With this, I believe the market is still a buy on the pullback type of scenario. I think that 155 is going to be an area that a lot of people will watch quite closely. If we were to break down below 155, that could change things, but this is clearly a market that I think will continue to attract the carry trader.

AUD/USD Technical Analysis

The Australian dollar initially did try to rally a bit during the trading session on Monday, but then gave back gains as we are still bouncing along that 0.62 level. This is an area that if we break down below, we could really see the Aussie plunge, and quite frankly, that wouldn’t surprise me at all. Rallies at this point, if they show signs of exhaustion, are probably going to get jumped on by traders out there taking advantage of cheap greenbacks.

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