EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Looks to Continue the Recovery

EUR/USD Technical Analysis

The Euro fell initially during the trading session on Friday, but we have since seen the market bounce a little bit as I think what we are looking at here is more or less going to be some type of consolidation area here. So, I’m assuming that the market is going to continue to look at the area of 1.15 as significant resistance, while we may see a lot of support somewhere near the 1.13 level, maybe 1.12, which had previously been important.

This does make a certain amount of sense because the market had gone straight up in the air, so at the very least you would expect to see sideways action. That’s essentially where we’re at right now, just hanging around trying to determine whether or not we can keep these elevated levels.

USD/JPY Technical Analysis

The US dollar rallied against the Japanese yen early. It looks like it’s still in the process of trying to form some type of bottom. When you look at the longer term charts, the 140 yen level is a major support level. So, this is not a huge surprise. And if we can continue to go to the upside, the 145 level, I think, would be your next target, followed by the 50 day EMA.

AUD/USD Technical Analysis

The Australian dollar has pulled back yet again from the 200 day EMA, which is now starting to act like a brick wall. If we break down below the lows of the session on Thursday, we could see a drop to the 50 day EMA. If we can break above the 0.6450 level, then it could open up more Australian dollar strength, but I suspect that this will probably be more about the US dollar. So, watch the entirety of the FX markets to see what’s happening with the greenback. This is a bit of an epicenter of Chinese-US trade tensions, as Australia is so highly levered to China.

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