EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Gives Back Some Gains on Friday

EUR/USD Technical Analysis

The euro has initially fell against the US dollar but then turned around to show signs of strength again. The 1.08 level looks very much like a short-term floor in the market and as long as we can stay above there, I think the euro has a real shot at staying somewhat strong. The level of 1.09, of course, has been important also, but I think you have to look at this through the prism of a market that will be very noisy. I do think eventually we will try to test the highs again at the 1.0950 level.

A move above there then opens up the possibility of a move all the way to the 1.12 level. I do think this is eventually what we will see play out here, as it has been so inherently strong as of late. On the other hand, if we were to turn around and break down below the 1.08 level, then it’s possible that we could drop to the 200 day EMA.

USD/JPY Technical Analysis

The US dollar has initially rallied against the Japanese yen, but it is starting to show weakness again. The 150 yen level seems to be a pretty significant barrier, so as long as we are below there, I assume that we stay somewhat muted. If we could get a daily close above the 150 yen level, then I think, ultimately, you have a shot at making a few moves to the upside, possibly even as high as the 200 day EMA and then the 155 yen level. On the other hand, if we turn around and break down below the 147 yen level, then I think we will go looking at the 145 yen level, given enough time.

AUD/USD Technical Analysis

The Australian dollar has dropped a bit during the early hours, but it is starting to gain some of those losses back against the U.S. Dollar as we are in the middle of the overall consolidation area between the 0.62 level on the bottom and the 0.64 level above. With this being the case, we’re right dead in the middle. So, I think this is going to continue to be very sideways and more or less a short-term back and forth trading type of environment.

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