EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Drifts a Bit Lower

EUR/USD Technical Analysis

The euro has rallied quite nicely against the US dollar during the early hours on Friday, but as you can see, we are still very much in the same area of noise. The noise, of course, is something that we need to deal with and I think it continues to be a range that I think keeps a bit of a lid on this market. I’d be looking for signs of exhaustion to take advantage of shorting. If we do get some type of exhaustion, we could go looking to the 1.13 level and then the 1.12 level underneath there.

If we do continue to rally from here, the 1.15 level is a massive barrier that traders will have to pay close attention to. And if we were to break above there on a daily close, then it’s very likely that the euro just goes flying against the dollar and then you’ll just see the dollar meltdown against everything. It is interesting to see how we are pushing higher, but this is right here where we run into trouble. If we break down below that 1.12 level, then I think we go look into the 50 day EMA and then the 1.0950 level.

USD/JPY Technical Analysis

The US dollar has fallen again against the Japanese yen. We have not broken above the top of the hammer from the previous session. So, the technical signal did not fire off. If that breaks out to the upside, then you could see the 145 yen level show signs of life and, as magnetism for the US dollar, anything above there opens up the possibility of a move much higher. Now, if we break down from here, the 142 yen level and the 140 yen level both offer support.

AUD/USD Technical Analysis

The Australian dollar has rallied quite nicely during the trading session, but again, this is kind of like the Euro in the sense that we’re just digging into the same area and there doesn’t seem to be a lot of momentum one way or the other. And with that being the case, I think you have to wait to see whether or not the Australian dollar can close above the 0.65 level because that would be something new. As things stand right now, it’s just more of the same back and forth that we had been stuck in for a while and therefore I think it’s very likely we’ll see this candlestick fail a bit and we’ll drift back towards the 200 day EMA.

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