EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Softens Ahead of Election Results

EUR/USD Technical Analysis

The Euro rallied a little bit in the early hours on Tuesday to reach the crucial 200 day EMA, but that being said, there are a lot of questions to ask about what’s happening because quite frankly, we have the US elections going on. So, with all of that being said, I think you’ve got a scenario where this really doesn’t mean anything. It’s just simply a market that is grinding back and forth with a slightly positive tone, perhaps due to the idea that it had gotten oversold.

The 1.0850 level underneath should continue to see a bit of support, but if we were to break down below there, it’s also possible that the 1.0750 level might get tested. To the upside, we have the 50-day EMA and the 1.10 level offering resistance, so therefore, I think you’ve got a situation where that is your ceiling based on any shock in the election. I don’t know what changes after the election and neither does the market. That’s why we are seeing what we are seeing.

USD/JPY Technical Analysis

The US dollar rallied slightly against the Japanese yen during the early hours on Tuesday but gave back those gains. And I think this is the market that will probably be the noisiest before it’s all said and done over the next 24 to 36 hours, and I also recognize that we are in an uptrend and probably will be for a while.

The idea is that the 150 yen level should be significant support, especially where the 200 day EMA currently resides. So that adds even more credence to this area. Further compounding the 150 yen level as being important is the 50 day EMA trying to get there as well. So, we could be getting ready to see the so-called Golden Cross. Either way, you get paid at the end of every day to hold this pair, so keep that in mind.

AUD/USD Technical Analysis

The outlier, of course, is the Australian dollar, which overnight saw the Reserve Bank of Australia choose to hold its rates, so therefore, it might be getting a little bit of a reprieve due to the idea that at least they didn’t say we’re going to cut. It is an oversold currency so none of this is a surprise.

But whether or not we truly take off to the upside remains to be seen and I’m still skeptical of this. Somewhere near the 0.67 level I would anticipate seeing quite a bit of resistance and that’s assuming of course that we even get above the 200 day EMA or the 50 day EMA.

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