EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Softens a Bit on Friday

EUR/USD Technical Analysis

The euro climbed a bit against the US dollar during early trading on Friday, but at this point in time, it looks very much like a market that is going to continue to struggle a bit for big moves. It is worth noting that the 1.16 level has offered a bit of support, and that, of course, is a good sign. So, with that, I anticipate that you have a situation where traders are looking to play the bounce.

And I would also pay close attention to the 50 day EMA, which sits down at the 1.15 level, an area that previously had been very important as well. Ultimately, this is a market that I think given enough time probably tries to get back to the 1.18 level, but we’ll have to wait and see. If we were to break down below 1.15, that would be a very negative turn of events.

USD/JPY Technical Analysis

The US dollar has struggled a little bit against the Japanese yen during the trading session on Friday in the early hours. But I would point out that we are still above the 200 day EMA and we are simply consolidating. The question is, can we break above the highs of the week? If we can, then I think that opens up a pretty decent opportunity for this market to continue climbing towards 151 yen. Pullbacks at this point in time, I do think, offer buying opportunities as the Japanese have a lot of problems with their bond market right now, suggesting the Bank of Japan may have to go back into quantitative easing. We’ll just have to see.

AUD/USD Technical Analysis

And finally, here in the Australian dollar, we see a lot of back and forth trading. I think it’s pretty obvious that the 0.6550 level is a bit of a magnet for price and we’ll just have to see whether or not that gets targeted. If we can break above there, the 0.66 level seems to be an area that is offering significant resistance. You could even make the argument that we are in some type of channel here in the Australian dollar. It’s a little early to really start to think that it’s going to be a massive trend. I think what we’ve got here is a currency that quite frankly, despite the fact that the US dollar has been very weak, just can’t get off the ground. And I would point out it’s the European currencies that seem to be doing fairly well, while the Asian currencies seem to struggle.

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