EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Show Life

EUR/USD Technical Analysis

The euro initially did try to rally a bit during the early hours on Friday but then turned around and fell fairly hard as we continue to see a lot of US dollar strength. All things being equal, this is a market that I think you need to pay close attention to, as it could give an idea, if you will, about where things might end up going over the longer term for the US dollar in general.

So, with that being said, you have to understand that the 50-day EMA above continues to offer pretty significant resistance, and the 1.05 level is right along with it doing the same thing. Underneath, we have the 1.03 level, which could be support. Anything below there, opens up 1.02. I am bearish to this market and like fading rallies.

USD/JPY Technical Analysis

The US dollar has recovered quite nicely against the Japanese yen and as you can see, we are approaching the 155 yen level and the 50-day EMA again. So that does of course come into the picture for a potential barrier. Once we get above there, then you could be looking at the 156.50 yen level.

AUD/USD Technical Analysis

The Australian dollar did try to rally, but it’s given back most of those gains. We are sitting right on the 0.62 level in a market that just has a lot of malaise attached to it. As long as the Chinese economy remains sluggish, the Australian dollar is likely to struggle as well, given Australia’s strong economic ties to China, particularly through its raw material exports. As long as China is sluggish, so will Australia be. Rallies are to be sold into at the first signs of exhaustion.

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