EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Look Mixed

EUR/USD Technical Analysis

The euro rallied slightly during the beginning of the trading session on Monday, but really at this point in time, it does look just a touch overextended here. So, I think we’ve got a situation where pullbacks are probably somewhat imminent. Now that, of course, doesn’t really change what we had been looking at previously, with the 1.16 level being a pretty significant area of breakout. As a matter of fact, we may pull back to test that and see if it holds. I certainly wouldn’t short this pair, at least not at the moment, but I’ll be watching this very closely in this area to see if it does react and bounce that it could end up being a buying opportunity.

USD/JPY Technical Analysis

The US dollar against the Japanese yen continues to be a pretty messy situation. But having said that, it’s not a huge surprise you have a situation where you do get paid to hang on to this position to the upside. And as a result, certain traders will be looking at this through the prism of whether or not we are trying to shift the entire scenario. And I think we are, actually I think this is a situation where traders are looking at this and saying, okay, so we’re right here by the 50 day EMA, sooner or later, we start to pay attention to the 200 day EMA and what that’s doing, and that right now is offering significant resistance.

But if we can get above this 50 day EMA, perhaps we go climbing to the 148 yen level again, which is where the 200 day EMA sits, which is typically thought of as a major support resistance area. If we do break down below here, I see a somewhat important area in the range of 142 yen, but we’ll just have to see how that plays out. I still favor the upside simply because you get paid to wait.

AUD/USD Technical Analysis

And finally, taking a look at the Australian dollar, we continue to struggle with 0.6550. We’ve pulled back from there, yet again. We just cannot really take off to the upside and go looking to maybe 0.67 yet, despite the fact that the US dollar is weakening against multiple other currencies. But it appears to me that Pacific currencies, for example, the yen, the Australian dollar, the New Zealand dollar are all in the same boat, they just can’t launch against the greenback. So that tells me that most of what we’re seeing anti US dollar is a pro Europe, pro-UK type of situation.

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