EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Be Noisy

EUR/USD Technical Analysis

The euro initially fell against the US dollar during the trading session on Friday but has turned back to show signs of life again. By doing so, it suggests that we are still very much in a consolidation range overall. But I think you need to look at the bigger consolidation range with the 1.05 level above offering resistance and the 1.02 level underneath offering support. The 50 day EMA sits right around the same area as well. So, I think it all ties together quite nicely for a much choppier market, which is typical of the Euro anyway.

USD/JPY Technical Analysis

The US dollar has initially fallen against the Japanese yen only to turn around and show signs of strength again. Quite frankly, if we can break above the Friday candlestick from the previous week, which is an inverted hammer, I think that’s a very bullish sign for the US dollar. In that environment, you probably see the US dollar looking to the 200 day EMA at the 152 yen level.

If we do fall from here, I think there is a certain amount of support near the 148.50 level. And as long as we can stay above there, I still have hope for the dollar. But if we break down from there, then I think the yen overwhelms it.

AUD/USD Technical Analysis

The Aussie has broken rather significantly lower over the last couple of days, and now it looks like we are threatening the 0.62 level. The 0.62 level is a large, round, psychologically significant figure and an area that I think will cause quite a bit of noise.

A bounce from here could very well happen, but I look at the 50-day EMA as a significant barrier. If we were to break above there, then the 0.6350 level would be your next barrier. I do favor the downside overall, and recent action, of course, has reiterated that as being the reality.

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