EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Be Mixed in Friday Trading

EUR/USD Technical Analysis

The euro has rallied a bit in the early hours of Friday as we continue to see a lot of bullish and noisy behavior. Ultimately, I think this is a market that short-term pullbacks will probably be bought into with the 1.16 level likely to offer support. While I do think that this market is overbought, I also recognize that momentum is pretty bullish. So, you have to just look at it through that prism. There’s no real way to argue. Weaker economic data out of the United States has traders betting on several cuts later this year, and that’s part of what’s going on here.

USD/JPY Technical Analysis

The US dollar has rallied a little bit against the Japanese yen, and the Japanese yen is in its own world at the moment, mainly due to the fact that they have a serious problem in the bond market with a lack of demand. If that’s the case, then the Bank of Japan probably will have to do some type of quantitative easing and therefore the Japanese yen will suffer. The 145 yen level is a short-term barrier, but if we can break above there, 146 would be your next target.

AUD/USD Technical Analysis

The Australian dollar continues to see the same resistance barrier in the form of 0.6550 in early trading on Friday and this just tells me that this is an area that if and when we can finally break above it, it will be a huge signal that we are going higher. If we can’t, then it’s an obvious place to short from and put your stop losses above. Ultimately, this is a market that’s been very grindy and very noisy over the last several months, although it has been ever so slightly bullish. That being said though, I do find it interesting that we are giving up at 0.6550 yet again.

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