EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Gives Up Gains

EUR/USD Technical Analysis

The euro initially fell against the US dollar during the trading session on Friday but has turned around to show signs of life again. With this being said, the market looks as if it is ready to turn around and head back into the consolidation area. But it should be noted that there is a lot of noise just above. All things being equal, the market is likely to continue to see a lot of back and forth noisy behavior, but I also recognize that there is a lot of previous upward momentum that you have to think about remaining in this market.

After all, bonds in Germany have exploded to the upside as far as the yields are concerned, and that makes the euro much more palatable. Furthermore, you have the German economy heading out of recession, so that gets people excited. Whether or not we can break above the 1.0950 level comes into play, but right now I think we are going to try to recover.

USD/JPY Technical Analysis

The US dollar fell a little bit during the early hours on Friday against the Japanese yen. We are in an area though I think you’re going to see a lot of sideways action more than anything else as we are right around the 50 day EMA. The 150 yen level of course is an area that will continue to be important, and I think given enough time, we will see some interest in that area. The 200 day EMA sits just above that could offer resistance.

AUD/USD Technical Analysis

The Australian dollar continues to hover around the 50 day EMA, essentially doing nothing. And I think this is a market that’s going to be very difficult to put a lot of money into, unless you’re a short term scalper. If you’re a scalper, this is a great market because we have a clearly defined range, and we even have a slightly bigger range which is the 0.62 level on the bottom and the 0.64 level on the top. So, swing trading might be possible if you are patient enough. Right now, though, we are basically right in the middle of this area. So, it’s essentially at fair value.

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