EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Fights Back on Friday

EUR/USD Technical Analysis

The euro initially did try to rally pretty significantly during the early hours on Friday, but it looks like the 1.06 level continues to act as a bit of a barrier. If we can clear that level, it does open up the possibility of the euro going to the 1.0750 level, an area that’s been important multiple times in the past and also features the 50 day EMA currently. However, the action on Friday suggests that we have more work to do before we can really think about doing such a thing. If we were to drop and fall below the 1.05 level, then you could see the euro start to plunge again.

USD/JPY Technical Analysis

The US dollar has fallen rather significantly against the Japanese yen as we continue to test the 150 yen level. This is an area I’m watching very closely and if we do bounce them here, I might have a go at a long position here as the dollar could climb right back to the 155 yen level. While this latest pullback has been somewhat ugly, when you pull out your Fibonacci retracement tool, you’ll realize from the bounce, we’re only down about 38.2%. So technically speaking, you could still make an argument for a pullback and then continue happening.

AUD/USD Technical Analysis

The Australian dollar initially tried to rally, but much like the Euro gave up its gains early in the day, as the greenback continues to see yield spikes. If that’s going to be the case, then we need to look at this through the prism of consolidation and ask questions as to whether or not the Australian dollar is building up a bit of a base or if it’s about to plunge.

I suspect this has more to do with the US dollar than the Aussie dollar, so I believe the US dollar will probably move in the same direction against all of these currencies before it’s said and done. I don’t have any interest in putting a lot of money in this market, and I recognize that unless you’re a short-term scalper, there’s not a lot to do, but it is worth noting that the 0.65 level is an area that’s been important for a couple of years, so we’ll have to see if it holds.

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