EUR/USD, USD/JPY, AUD/USD Weekly Price Outlook – Dollar Has a Noisy Week

EUR/USD Technical Analysis

The euro has seen the market go back and forth during the course of the week and the euro of course is paying close attention to the 1.05 level, which is a large round number. And then after that, you have the 1.0350 level. If we can break above the top of the week, then we could go looking to the 1.0750 level, but keep in mind that the US dollar is representative of an economy that is performing head and shoulders over the European Union. In general, this is a lot of sideways action. I think we will probably see a bit more of that over the next week or two.

USD/JPY Technical Analysis

The US dollar has stabilized against the Japanese yen, and while it’s not necessarily the most impressive of candlesticks by itself, it’s worth noting that the previous one was horrific. So at least we’re in the process of trying to turn things around. I suspect that the 152 yen level being broken to the upside opens up the possibility of a move to the 156 yen level.

We are right around the 50 week EMA and the 50% Fibonacci retracement level. So, I think there’s a lot of technical support here. A lot of this is going to come down to interest rates and whether or not they continue to rise in the United States, despite the fact that the Federal Reserve is cutting.

AUD/USD Technical Analysis

The Australian dollar has plunged, and this is mainly due to the Aussies missing GDP this past week and now I think we could make a move down to the 0.6250 level. It won’t be easy to get down there because we do have a lot of support between here and there, but I think that’s where the market will naturally try to get down to.

On the other hand, if we turn around and break above the 0.66 level, then you could see the Aussie recover, but you would probably need to see the US dollar weaken against almost everything else at the same time. So, really at this point in time, this looks fairly negative, but I don’t think it’s catastrophic. I don’t think we got a whole lot worse than we are now.

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