EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Drops Early on Tuesday

EUR/USD Technical Analysis

The Euro initially fell a bit during the trading session on Tuesday in the early hours but then turned around to show signs of life again. All things being equal, this is a market that is trading between the 1.15 level and the 1.13 level. As we are basically in the middle of this region, there isn’t a whole lot to read into this, other than perhaps we have more consolidation to go before we get any type of clarity. I imagine this is going to continue to be very choppy.

USD/JPY Technical Analysis

The US dollar initially spiked against the Japanese yen but has turned around as it broke above the 145 yen level, tested the 50 day EMA and then fell back. At this point, this is a market that I think is knocking on the door of breaking out, but it just needs some type of catalyst. That being said, we do have some information coming out in the form of CPI on Wednesday, so maybe that’s what gets the market to take off. We’ll just have to wait and see. But as things stand right now, it still looks like a buy on the dip market.

AUD/USD Technical Analysis

The Australian dollar did fall a bit during the early hours on Tuesday as well, but has turned around to recover as we’re just killing time. At this point, you have to watch the 0.6550 level for resistance. And if we can break above there, it does open up the possibility of a bigger move towards the 0.67 level. Short-term pullbacks are buying opportunities, with the 200-day EMA and the 50-day EMA hanging around the 0.64 level as potential support.

I really don’t have a lot to do here, I think, other than perhaps look at it as a potential buy-on-the-dip type of scenario. Really, this is a market that is just hanging around waiting to see what happens in the trade negotiations between the United States and China, as Australia is so heavily influenced by the Chinese economy.

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