EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Loses Ground Early on Friday

EUR/USD Technical Analysis

The euro has pierced the 1.05 level, but it also looks like it is running into a little bit of trouble. So, it’s not a huge surprise that I am now looking to short this pair. After all, the euro is a currency that’s been struggling for a while and the 1.05 level, of course, is a large round psychologically significant figure.

So therefore, I think you’ve got a scenario where you have to look at this through the prism possibly overextension and the 50-day EMA coming into the picture to offer some headaches. If we do break down from here, the 1.03 level would be the target. I see a lot of noise between where we are right now and the 1.06 level, and I think it’ll be difficult to overcome it.

USD/JPY Technical Analysis

The US dollar initially pulled back against the Japanese during trading on Friday, mainly due, I believe, to the Bank of Japan obviously raising rates, but they may have signaled that they’re somewhat done for the moment. They seem like they’re pretty happy with things.

So, we have bounced from the 50-day EMA and the 155 yen level, and now it looks like we’re going to try to go back towards the top of this overall range at the 158 yen level. If we were to break down below the lows of the day, that could trigger a deeper correction, but right now it looks like not much is changing. We are still consolidating.

AUD/USD Technical Analysis

The Australian dollar initially tried to rally during the Friday session as well, but much like the Euro, it is struggling near the 50-day EMA and didn’t seem to be able to get beyond the 0.6350 barrier. I think this is an opportunity to start selling again and as a result, I am in fact looking for exhaustion in a shorter timeframe to start selling into. If we can break above the 0.64 level, then we can have a different conversation. But right now, it looks like the overall downtrend is still with us.

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