EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Softens Slightly in Early Friday Trading

EUR/USD Technical Analysis

The euro rallied ever so slightly during the early hours on Friday, as we continue to see the 1.03 level offer a significant amount of support. That being said, I do think you have a scenario where traders are going to be looking at rallies as selling opportunities, and I am thinking along the lines of waiting to see if we get closer to the 1.06 level and show signs of exhaustion that can be sold into. Speaking of the 1.06 level, we have the 50-day EMA approaching that area as well and it should offer more technical resistance.

USD/JPY Technical Analysis

The US dollar has pulled back just a bit against the Japanese yen but really at this point in time it looks like the 1.58 level is a bit of a ceiling. With this I think you have to look at this through the prism of a market that you’ll be buying dips in and taking advantage of cheap US dollars.

If we can clear the 158 yen level, then the next 75 pips or so might be a little noisy, but once we get through all of that, 160 and then 161.75 yen are both on the table. I have no interest in shorting this pair due to the interest rate differential.

AUD/USD Technical Analysis

In the Australian dollar, we have fallen to test the 0.62 level again, an area that has been supportive multiple times in the past, so a little bit of a bounce does make a certain amount of sense. It also should set up a nice selling opportunity sooner or later. Rallies that extend all the way to the 0.6350 level would be particularly interesting because there’s a major area of support and resistance there as well.

I have no interest in buying the Australian dollar there’s no real reason for it to turn around at the moment. But I think what you’re seeing in both the Aussie dollar and the euro is just a simple lack of volume to push it through support.

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