EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Gives Up Some Strength on Monday

EUR/USD Technical Analysis

The Euro launched higher during the early hours of the trading session on Monday, as we are now back above the 50 day EMA. Ultimately, it’ll be interesting to see whether or not we can continue to see a lot of upward momentum, but I do think that the 1.05 level is the beginning of pretty significant resistance that extends all the way to the 1.06 level.

Because of this, I look at this with interest, but I don’t necessarily want to start buying the euro here. I don’t know if the risk to reward ratio is set up quite nicely. Yes, it’s a very impressive candlestick so far, and it may end up being something that matters, but right now we still haven’t gotten through a lot of noise to make me overly aggressive.

USD/JPY Technical Analysis

The US dollar initially pulled back against the Japanese yen but has bounced again as it looks like we are starting to keep a serious eye on that interest rate differential, which will continue to favor the US dollar overall. The 150 yen level is an area that you need to pay close attention to. But it’s an area, it’s not a brick wall. Keep that in mind. And in fact, we’ve dropped all the way down to the 148.50 yen level during the test of this area. So, think of it as a support zone. The 200-day EMA sits just underneath the 152 yen level. I think that will be tested.

AUD/USD Technical Analysis

The Australian dollar has rallied slightly against the US dollar, but in the big scheme of things, I don’t think it’s going to matter much. More likely than not, you will have traders looking to short the Aussie on some type of bounce at the first signs of exhaustion. With that, I am looking for a better price to buy US dollars and short Australian dollars. Somewhere around the 0.63 level, I will revisit this chart and take a look to see whether or not there is some type of exhaustion that has me getting involved.

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