EUR/USD, USD/JPY and AUD/USD Weekly Forecast – US Dollar Has a Strong Week

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Updated: Nov 15, 2024, 15:31 GMT+00:00

The past week has been somewhat negative against the US dollar, although it is worth noting that the greenback has been very strong. This is a situation where the market might be just working off a bit of froth at this point in time.

EUR/USD Technical Analysis

The euro plunged during the course of the week to reach down to the 1.05 level. All things being equal, the market is at a loss and continues to see the 1.05 level as a major support area. So, we’ll have to wait and see whether or not we can bounce from it. So far, we have seen that happen near the end of the week here on Friday. So, we’ll have to wait and see how this plays out. If we do break down below the 1.05 level, then we could drop down to the 1.0250 level. Rallies at this point in time will more likely than not end up being short-term opportunities that can be faded on signs of exhaustion.

USD/JPY Technical Analysis

The US dollar has rallied a bit during the course of the week to break above the 155 yen level and short-term pullbacks will more likely than not offer buying opportunities. All things being equal, I do think that we continue to see the interest rate differential play a huge part in this pair, and I think that the US dollar will eventually try to get to the 160 yen level. We are a little overdone, so a bit of consolidation and a slight pullback could make some sense.

AUD/USD Technical Analysis

And in the Australian dollar, we have broken below the 0.65 psychological barrier, and I think ultimately you have to look at this through the prism of a risk on or risk off type of global situation. As long as there are concerns out there, and of course the idea that the US dollar is strengthening against almost everything, I do think that we will eventually try to get to the 0.6350 level, an area that should be massive support.

If we were to do so, a lot of financial markets on fire, quite frankly, because it would be pretty much a fresh new low against the dollar for not only the Australian dollar, but probably the euro and several other larger currencies such as the Japanese yen, Canadian dollar, etc. So, watching the US dollar in general is the crux of all of this analysis.

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About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.