EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Recovers in Early Friday Session

EUR/USD Technical Analysis

The euro initially tried to rally a bit during the early hours on Friday, only to see the market turn around and fall apart. By doing so, the market looks very much like it is still stuck with consolidation here. And I think we are probably trying to settle into a new range that we are comfortable with. That being said, I also recognize that if we break down below the 1.12 level, that’s a big win for the US dollar. Now, I don’t expect that in the next trading session or two, but the reality is, we have run out of upward momentum and that is something to keep an eye on.

USD/JPY Technical Analysis

The dollar initially fell against the Japanese yen, but it looks like it’s trying to fight back. So, we’ll have to see how things play out. If we can recapture the 145 yen level, I think that would be strong for the U.S. against the Japanese yen. And it’s worth noting that there is an interest rate differential that is quite wide in this market. So, you can take advantage of that while you’re waiting for the uptrend to continue. However, if we break down below the 142 yen level, we could see this market drop down to the 140 yen level. Although right now, I think there’s enough pushback that at best, we’re probably looking at range bound bottoming with an upward tilt.

AUD/USD Technical Analysis

The Australian dollar has fallen again during the day, but really at this point in time, it’s the same thing over and over. We are in a range between 0.6350 at the bottom and 0.65 at the top. We are basically right in the middle of that range. So, we would be at what people probably call fair value at the moment. Ultimately, I do think you have a scenario where people are waiting for some type of external catalyst to get going. Right now, there just doesn’t seem to be one.

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