EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Continues to See Buyers

EUR/USD Technical Analysis

The euro initially tried to rally and break out during the trading session on Friday, only to turn around and show signs of negativity. At this point, it looks like we are ready to go back into the consolidation as the U.S. dollar continues to outperform most other currencies around the world.

The euro of course suffers at the hands of a rather weak economic situation in Germany especially, as well as France, but we also have the Ukraine war in the neighborhood as well. So, all things being equal, I think we are going to continue to consolidate in the same area that we had been in previously.

USD/JPY Technical Analysis

The US dollar has gone back and forth during the trading session on Friday as we bounce around just below the 200 day EMA. At this point in time, if we can take out the 151 yen level to the upside, I think that’s a very positive sign. And it almost certainly will bring more FOMO trading into the market as people are willing to take advantage of cheap US dollars. The interest rate differential continues to favor the greenback and I think that’s probably the biggest story here.

AUD/USD Technical Analysis

The Australian dollar has plunged and that’s not a huge surprise considering that we had had some issues here where the Australians had recently formed a very negative report when it comes to their GDP, as it missed, and that of course is toxic for most economies.

So, with that being said, you’ve got a situation where traders run to the dollar. If we can continue to break down from here, perhaps below the 0.635 zero level, then it opens up a move down to the 0.6250 level. In general, I think that short-term rallies will continue to get sold into as well.

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