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

EUR/USD Technical Analysis

The Euro has rallied a little bit during the early hours on Monday, although I’d be the first person to say it does look like we are struggling a bit. And therefore, I think the 1.15 level will more likely than not continue to hold. After all, the 1.15 level is an area that has been important a couple of times in the past, and it is a large, round, psychologically significant figure.

If we fall from here, the 1.13 level below is support, right along with the 1.12 level. With this, I think we are still very much range bound, and this pair will be thrown around by the bond market.

USD/JPY Technical Analysis

The US dollar has fallen a bit against the Japanese yen during the early hours here on Monday as well. And this makes a bit of sense. The 145 yen level has been resistant multiple times. And of course, we’ve had the 50-day EMA sitting right here offering resistance as well. So, with this, we’re basically at the top of the short-term range.

If we can break out above the 50 day EMA, then we will challenge the 146 level. And then after that, we could really start to break out towards the 200 day EMA. In the meantime, though, I think we’re just still building a base and it’s going to take some time, and we may go sideways for a little bit.

AUD/USD Technical Analysis

The Australian dollar has rallied again during the early hours on Monday as it continues to pressure the resistance just above, but it just seemingly can’t quite get above it. This is an area that I’ll be watching very closely in the form of 0.6550. And I think this could be a fairly important level. But as you can see, we’ve attempted multiple times now and we are starting to pull back again as we got there. So, I’ll be watching this.

Certainly, this pair looks to be tilting higher, but we just haven’t had enough pressure to make it truly break out to the upside. So, I think this is a pair that is probably more or less a scalping pair or one that you’ll just be watching for a while until it makes a definitive move.

For a look at all of today’s economic events, check out our economic calendar.