EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Softens Again on Friday

EUR/USD Technical Analysis

The euro rallied again pretty significantly during the trading session on Friday to spike towards the 1.15 level. It looks like we may have hit a little bit of an air pocket. But at this point in time, you have to ask whether or not there shouldn’t be some type of pullback. Quite frankly, a lot of this is coming down from increased expectations that the Federal Reserve might cut rates to avoid a massive recession.

But these are early days, and with everything being as fluid as it is, it makes a certain amount of sense that caution is to be paid to this market. 1.12 below should offer support on pullbacks.

USD/JPY Technical Analysis

The US dollar has fallen again against the Japanese yen, as it looks like we are testing that crucial 142 yen level. A breakdown below that level then sends markets much lower and therefore we could see a pretty significant drop. At this point in time, if you zoom out far enough, there is a massive head and shoulders, but we are a couple of handles away from breaking that out.

AUD/USD Technical Analysis

The Australian dollar has been all over the place during the trading session, but interestingly enough, unlike the other two currencies in this video, the Australian dollar still seems a bit sluggish. And that makes a certain amount of sense, if you think about it, mainly due to the fact that the Australian dollar and the Australian economy are highly levered to China.

And therefore, you have to assume that there are still lot of fears about this US-China trade spat. With that being said, if we were to break down below the bottom of the candlestick for the day, I suspect we continue the overall downtrend.

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