US Dollar Has Another Strong Week – EUR/USD USD/JPY and AUD/USD Weekly Technical Analysis

EUR/USD Technical Analysis

The Euro has fallen during the week as it looks like we are threatening the 1.03 level. That being said, it’s probably worth noting that we did bounce at the end of the week. I think we are a little overdone, but at the end of the day, if we break the 1.03 level, that will open up even more selling.

The reality is that it’s very possible that this will happen. Federal Reserve Chairman Jerome Powell really set the market on fire on Wednesday of the week as he suggested that he: A, doesn’t know what he’s doing and B, the Federal Reserve might have to stay tighter for longer, even going so far as to say that it’s not inflation that’s hurting America, it’s high prices.

So that lack of confidence has people piling into higher yielding bonds in America. On the other side of the Atlantic, you have the European Central Bank, which is going to be loosening monetary policy and of course, has had a couple of governments topple recently. So, with this, it’s very likely that each rally gets sold into.

USD/JPY Technical Analysis

The US dollar has climbed against the Japanese yen for the week and looks like it is ready to perhaps continue to go a little higher. Friday was a little bit of a pullback, but it seems a bit more like profit taking, perhaps. Short term pullbacks, I do think offer buying opportunities, and I do think that it’s probably only a matter of time before the market goes looking to the 161 yen level.

The 50 week EMA underneath is sitting at the 150 yen level and it’s offering a bit of a floor in this market. I don’t necessarily think that we go straight up in the air, but I look at each pullback as a buying opportunity.

AUD/USD Technical Analysis

The Australian dollar looks horrible and in fact, if we do break down below the lows of the week, just right around the 0.62 level, bottom probably falls out for another two or three handles. If we can take out the 0.6350 level, the Aussie might have a fighting chance, but I’m more apt to fade rallies that get to that region.

Signs of exhaustion I think will get jumped all over as the Australian dollar is a course tied to China, which has a whole host of problems right now from an economic standpoint. At the same time, it looks like the US dollar is going to swallow everything.

For a look at all of today’s economic events, check out our economic calendar.