EUR/USD, USD/JPY and AUD/USD Weekly Forecast – US Dollar Rallies Again This Week

EUR/USD Technical Analysis

The euro has fallen a bit against the US dollar during the course of the week, but we have seen a little bit of a pushback in the back half of the week, especially on Thursday. That being said, this is a market that I think is just simply looking at the overall consolidation and the 1.08 level offering support.

Ultimately, I think you’ve got a scenario where traders will continue to push this market back and forth because, quite frankly, both central banks are fairly loose with monetary policy. If we break down below the bottom of the weekly candlestick, then we could drop to the 1.0650 level. But right now, that’s about as far as I think we go in the immediate term.

USD/JPY Technical Analysis

The US dollar continues to race higher against the Japanese yen at one point breaking above the crucial 152 yen level. And at this point in time, you have to look at it through the prism of whether or not we can continue to go higher. I do think that given enough time we will perhaps even reach the 155 yen level. Things are kind of quiet on Friday so perhaps a little bit of a drift back and a rally will be in the cards going forward.

AUD/USD Technical Analysis

The Australian dollar has fallen a bit during the course of the trading week to break down below the 0.6650 level, testing the 50 week EMA but we have turned around the show signs of life. Ultimately, this is a market that if we do rally from here, then we could go looking to the 0.6850 level. If we break down below the bottom of the candlestick, then it’s likely that we could go down to the 0.645 level. But really, at this point in time, I don’t think that’s as likely. All things being equal, this is a market that continues to be noisy and driven on global risk appetite.

The US dollar strength is calming down just a bit. It will only take one or two bad headlines to get that racing again. But as things stand right now, even if we do fall, I think the 0.6450 level is about as low as we go. On a rally, I would anticipate that the 0.6850 level is an area that will act as a ceiling. Essentially, I think we’re just going to continue to chop back and forth more than anything else at this point.