EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Look for Strength

EUR/USD Technical Analysis

The euro rallied a bit during the early hours on Friday as it looks like we are still paying close attention to the 1.09 level, an area that of course is important as it recently had been a major swing high, and we’ve seen a big fight here. The question of course is whether or not we can continue to go higher. It’ll be interesting to see if we can. Right now, I think we’re probably more susceptible to going sideways trying to work off some of that excess froth and that sudden shift in attitude.

USD/JPY Technical Analysis

The US dollar has rallied a bit against the Japanese yen, but it is struggling at the same place that it has for a while here, right around 149 yen. By doing so, it tells us just how difficult it’s going to be to break above the 150 yen level, which would open up a bigger move. The question now is the previous support, will it end up being resistance?

So far it has, but really at this point, I think you’ve got a scenario where the US dollar is a little oversold against the yen. And perhaps we’ve priced in that move when it comes to the Bank of Japan raising rates later this year. They’re still only expected to be at three quarters of a percent.

AUD/USD Technical Analysis

The Australian dollar seems pretty lost at this point. We’re just hanging around the middle of the range that we’ve been in between the 0.62 level on the bottom and the 0.64 level on the top. The 50 day EMA is sitting right between that and that’s basically where we’re at, right at 0.63. So there is not much to do here other than observe.

The Australian dollar has underperformed all of the other major currencies that I follow, and therefore if I’m going to buy a currency against the US dollar it’s probably not going to be this one. Rallies at this point in time probably should see quite a bit of selling pressure near the 0.64 level, especially as the 200-day EMA is racing toward it.

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