EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar a bit Softer in Early Friday Trading

EUR/USD Technical Analysis

The euro rallied a bit during the early hours on Friday as we are testing the 1.03 level. Quite frankly, this is a welcome turn of events because I’ll be looking to step on the euro as it shows signs of exhaustion. The breaking of the 1.03 level, of course, is a big deal. It was a significant support level. So now the question is, will we have enough momentum to rally a bit? I suspect just letting the market do its thing and taking advantage of cheap US dollars on a rally is probably the way to go. And in fact, that very well could be the way to go for a while in most pairs, not just the euro.

USD/JPY Technical Analysis

The US dollar has fallen a little bit against the Japanese yen, but we’ve seen the last couple of days come and go with an initial attempt to sell off the US dollar for later on to see buyers jumping in and taking advantage of cheap greenbacks. The 158 yen level is an area of significant resistance if we can break above there on a daily close, then I think that kicks off the next leg higher towards the 162 yen level. If we break down from here, the 155 yen level, of course, is an area that I think should end up showing pretty significant support, especially now that you have the 50 day EMA reaching towards that area. It’s not there yet, but it is trying to get there.

AUD/USD Technical Analysis

The Australian dollar has rallied a bit. And again, this is much like the situation with the euro. I am going to be looking for signs of exhaustion that I could start fading. Quite frankly, the Australian dollar is a miserable place to be at the moment as far as buying is concerned. And it really isn’t until we break above the 0.6350 level that I would consider going long. Signs of exhaustion are what I would be looking toward to taking advantage of.

And I would start shorting at that point. I have no interest in buying in this market. And if we did break the 50-day EMA, I would have to reassess things, but I would probably be looking at the US dollar specifically, not so much the Aussie dollar. If the US dollar were to start breaking down everywhere else, then it would follow that it would happen here. Right now, though, that looks very unlikely. I’m still bearish of this pair.

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