EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Trying to Rally on Friday

EUR/USD Technical Analysis

The euro initially rallied a bit against the U.S. dollar during trading on Friday but gave back gains to show hesitation at the previous uptrend line. So, it does make a certain amount of sense that we see exhaustion here. If we roll over, I think you have your next leg down just waiting to happen.

This is a pair that has done everything that everybody said it shouldn’t be doing. And as a result, I think a lot of people are on the wrong side of this trade. A drift back to the 1.16 level would make a certain amount of sense, but if we do break above the highs of the day, we could go looking at the 1.18 level. Either way, technically speaking, the 50-day EMA sitting right here makes this an interesting setup.

USD/JPY Technical Analysis

The US dollar initially plunged below the 150 yen level against the Japanese yen has turned around and shown signs of life by the time we get back to America and its trading session. At this point, I do think the bounce is starting to build into the market, and a certain number of traders are trying to take advantage of a market that had gapped higher in such an obvious and brutal manner. I do believe that longer term we will go higher. The question now is whether or not we can pick up enough momentum to continue going to the upside. I think we can, but I also recognize that there is still a bit of a gap to fill, so we’ll have to see how that plays out. But clearly, the only direction you want to go is long.

AUD/USD Technical Analysis

The Australian dollar initially fell during the trading session but has bounced enough to get back to the 200-day EMA. The 200-day EMA, of course, is an indicator that people have been paying attention to for some time. And it, of course, has a major influence on the overall trend. If we do rally at this point, I think you have a certain amount of resistance above that we will be looking at in the form of 0.6550, an area that’s been like a magnet for price. The 50-day EMA sits there as well, so if we do get a little bit of a bounce, I’ll be looking for signs of exhaustion in that general vicinity. Otherwise, I think if we break down below the 0.64 level, the bottom falls out, and we go much lower.

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