Market Analysis Summary - July 14, 2025

The article provides a detailed analysis of the current state of the Forex market, focusing on three major currency pairs: EUR/USD, USD/JPY, and AUD/USD. The analysis is influenced by recent tariff discussions in the United States, which have created a volatile trading environment.

EUR/USD Analysis

The Euro has experienced a gap lower against the U.S. dollar but is showing signs of recovery. The article notes that the market's reaction to potential new tariffs from the U.S. administration, particularly against the European Union, has created opportunities for traders looking to buy the Euro. Key levels to watch include:

• Support: 1.16
• Resistance: 1.18

The author suggests that the 1.16 level is crucial for support, and the market's ability to maintain momentum will determine the potential for further upside movement.

USD/JPY Analysis

The U.S. dollar has gained against the Japanese yen, despite an initial gap lower. The 148 yen level is highlighted as a significant resistance point, coinciding with the 200-day Exponential Moving Average (EMA). The analysis indicates that:

• Buying the U.S. dollar at current levels is not advisable.
• Shorting the dollar is also not recommended due to Japan's economic challenges.

Attention is drawn to the 145 yen level as a potential buying opportunity, especially given the Bank of Japan's need to intervene in the bond market.

AUD/USD Analysis

The Australian dollar has shown volatility, gapping lower and then rallying before falling again. The market is described as choppy, with a potential for a significant decision point approaching. Key observations include:

• The market favors a long-term upside trend.
• A pullback is likely, with attention on the 0.6550 level and the 50-day EMA as potential support.

Traders are advised to remain patient as the market navigates through this indecisive phase.

Conclusion

The article emphasizes the importance of monitoring key support and resistance levels across these currency pairs, as well as the broader economic implications of U.S. tariff discussions. Traders are encouraged to stay informed and exercise caution in the current market environment.