EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to Fight Back Against Selling Pressure

EUR/USD Technical Analysis

The euro initially bounced a bit during the trading session here on Friday, but it does look like it’s respecting the memory of the 1.16 level, an area where the market had seen support previously. With this being said, the market will probably go lower, perhaps opening up a move down to the 1.14 level.

If we do rally from here, I think the 50-day EMA and the previous uptrend line both offer resistance. So, I look at the euro right now as a fade the rally type of situation.

USD/JPY Technical Analysis

The US dollar has spent the morning dropping against the Japanese yen. And I do think we need more of this. It’s probably worth taking a look at yen related pairs for a potential drop and then bounce. But right now, the US dollar is simply far too strong and far too elevated to start trading against the yen because of the massive stop loss needed.

I would love to see this pair pull back toward the 149 yen level, but we’ll just have to wait and see if that happens. Truthfully, most of the best setups I’m seeing are in other currencies against the yen. So, you can use this maybe as a bit of a barometer for those trades.

AUD/USD Technical Analysis

The Australian dollar is relatively flat, which is not a huge surprise. So that being said, the market is likely to continue to see the 0.6550 level as important, as it’s been a bit of a magnet for price for quite some time. With this being said, I think market participants continue to look at pullbacks as a little bit of a dip. And the 200 day EMA is probably a bit of a floor near the 0.65 level.

This is a market that’s been sideways for some time, with a somewhat bias to the upside. So, with this, I like the idea of watching this pair because if the US dollar really starts to strengthen, this pair will probably collapse. On the other hand, if we rally the 0.6633 level is your next target, followed by 0.67. The Australian dollar has been very choppy and difficult to trade for some time. I don’t see that changing.

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