EUR/USD, USD/JPY and AUD/USD Weekly Forecast – Weekly Chart Continues to Show US Dollar Strength Overall

EUR/USD Technical Analysis

The Euro has gone back and forth during the course of the week as the market continues to bounce around the 1.05 level. The 1.05 level, of course, is a large round psychologically significant figure, but perhaps more importantly, it’s an area that’s been support for almost two years now.

Because of this, it’s an area that I would pay close attention to, but if we break down below the candlestick from a couple of weeks ago, we are going to plunge, and parody will be calling. I think that’s eventually what happens. The question now is whether or not we will get a balance between now and then to start shorting.

USD/JPY Technical Analysis

The US dollar has rallied rather significantly against the Japanese yen for the week after stabilizing during the previous one. We have almost taken out the negative candlestick from the wipeout week two weeks previous, and now I think we are going to do everything we can to get to the 156 yen level. Anything above there probably puts the recent highs back on the table. Short-term pullbacks should see plenty of support near the 150 yen level, an area that has proven itself to be very important.

AUD/USD Technical Analysis

The Australian dollar has gone back and forth during the week and much like the euro, it is sitting on a support level going back a couple of years. This is a market that I think is probably a little more supported than the euro, but still I would be looking for rallies at this point in time as opportunities to take advantage of cheap US dollars and shorting the market again.

The Australian economy is slowing down, and at the same time the US economy isn’t. Furthermore, you have the fact that Asia is certainly in a lot of trouble and Australia is directly influenced by this. Because of this, I do favor the downside, but we are pretty low right now. I think we are a little stretched. So, you need to see a bounce to take advantage of.