EUR/USD, USD/JPY and AUD/USD Price Analysis: US Dollar Comes Back in Tuesday Trading

EUR/USD Technical Analysis

The US dollar initially fell a little bit in the early hours against the euro but has since seen quite a bit of strength. The shooting star for the Monday session seems to be kicking off more selling again, and at this point, I’ll be watching the 1.13 level, an area that, of course, has been important multiple times. If we break down below there, then the 1.12 level and the 50-day EMA come into the picture. Anything underneath there, we end up in the same consolidation area that we have spent the better part of two years in. I don’t have any interest in buying the euro until we can break well above the 1.15 level.

USD/JPY Technical Analysis

The US dollar has really found its footing against the Japanese yen during trading on Tuesday as well, as it looks like we are going to try to challenge that crucial 145 yen level. If we can clear that area, then I think we have much further to go. Short-term pullbacks continue to be interesting to me as the interest rate differential favors the US dollar so aggressively.

Furthermore, you have to keep in mind that the 142 yen level has been pretty significant support over the last couple of weeks, and we are in the process of forming a little bit of a double bottom there. If we were to break down below there, then you have to think that we’ll test the 140 yen level. But having said that, this looks a lot like a market that’s in the midst of bottoming longer term.

AUD/USD Technical Analysis

The Australian dollar has gotten hammered in the early hours, which probably isn’t a huge surprise considering that although we did break significantly above the 0.65 level on Monday, it was a holiday, so the liquidity just wasn’t there. What does this tell us? I think it tells us that we just aren’t ready to go anywhere and that we are going to remain in the 150 pip range that we had been in for some time. So, essentially, not much has changed, and it looks like the Aussie just doesn’t have the momentum to break out quite yet.

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