EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Softens Slightly

EUR/USD Technical Analysis

The US dollar has given back a bit of its strength against the euro during the early hours on Friday as we bounced from the crucial 1.12 level. The 1.12 level is an area that was a previous swing high in September of last year, so there’s a little bit of market memory there to deal with. If we can break down below there, then I think we do continue to see the euro fall a bit against the US dollar, which would make quite a bit of sense considering that we are starting to see momentum in the United States with trade deals, and of course, the euro is overbought. If we do rally from here, then we are more likely than not just reenter the previous consolidation range between 1.13 and 1.15 that we had been in for about two weeks or so.

USD/JPY Technical Analysis

The US dollar has pulled back a bit against the Japanese yen, but it is trying to hold the crucial 145 yen level, an area that should have been significant resistance, but we have pierced it a couple of times. What’s interesting is that we pulled back directly from the 50-day EMA, so it’ll be interesting to see if that technical indicator holds up.

A break above that level opens up the possibility of a move to the 148-yen level. Short-term pullbacks, even ones that break down below the 145-yen level, at this point in time are more likely than not to be potential buying opportunities.

AUD/USD Technical Analysis

The Australian dollar fell early during the session, but has bounced against the US dollar again, much like the Euro did, as it is trying to hold its bullish momentum. If we break down below the 0.6350 level, then I will be convinced that this was a false breakout. Otherwise, we could bounce towards a 0.65 level, which is where we peaked a few days ago. It is worth noting that we are hanging around the crucial 200 day EMA. So, this is a major decision level for a lot of longer term traders.

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