EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Mixed Early on Wednesday

EUR/USD Technical Analysis

The euro is pretty flat during the trading session on Wednesday in the early hours as we continue to hang around the 1.16 level. The 1.16 level has been important multiple times, and I think ultimately, we have a situation where if we can truly break out, then we could go much higher. We are at the top of a massive consolidation range, and I do think at this point in time, we are getting a little bit overextended or exhausted, but I think the biggest problem, quite frankly, is we just don’t have a catalyst to get that “risk on” right now. Short-term pullbacks are likely. Short-term pullbacks probably attract buyers.

USD/JPY Technical Analysis

The US dollar has rallied against the Japanese yen during early trading on Wednesday, as the 145 yen level has offered a bit of support. The question now is, can we take out the 146 yen level and then go back towards the 200-day EMA? I think ultimately, we’re probably going to grind to the upside more than anything else as we are trying to form some type of consolidation and potentially accumulation phase. Remember, you get paid at the end of every day when you hold this pair as the swap is most certainly positive for the US dollars.

AUD/USD Technical Analysis

The Australian dollar rallied slightly, but it looks like it is basically just stuck in the same area that we had been in for two or three weeks. The question now is whether or not we can break above the 0.6550 level. If we can break above there, then we will probably go higher, perhaps to the 0.67 level. More likely, what we continue to see is back and forth with the 200 day EMA and the 50 day EMA underneath offering support. So more sideways action, I think is what we have in store for us in the Australian dollar.

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