EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Fighting Back a Bit

EUR/USD Technical Analysis

The euro dropped a bit against the US dollar in the early hours of Friday as we continue to see the 1.18 level cause a little bit of trouble. Keep in mind that during the previous session on Thursday, the ECB did not move rates, and they even suggested that they were perhaps on hold. So, this may have taken some of the premium out as people, I think, believed that the Europeans were, in fact, going to tighten.

And with that being the case, this of course makes the Euro a little bit more attractive. I don’t necessarily believe that this is a market that is going to melt down, but I do think this is a market that might struggle to get above the 1.18 level. I can see a scenario quite easily at this point where maybe we just consolidate between the 1.18 level and the 1.16 level.

USD/JPY Technical Analysis

The US dollar has raised higher against the Japanese yen during the trading session on Friday to touch the 148 yen level and by extension, the 200 day EMA. This is a market that I do think breaks out eventually, but as things stand right now, it is rather difficult to get above here. If we do, then the 149 yen level is your next target. Anything above there opens up the floodgates. I expect to see that sooner or later, I just don’t know if we’ll see it right at this moment.

AUD/USD Technical Analysis

The Australian dollar has fallen yet again against the US dollar to reach the 0.6550 region yet again. We are in a fairly obvious uptrending channel, we are right in the middle of it, so this is about as neutral as it gets. Longer term, it does look like we want to go higher, but it’s more of a grind, it’s not really a huge move that I think it is going to push this market, I think it’s going to lull people to sleep for some time. And in fact, if you draw the channel out a little bit, maybe make it a little bit longer in time, you can even make an argument that we’re just continuing the same channel we were in before that big dip in early April, with the tariffs being announced.

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