EUR/USD, USD/JPY and AUD/USD Price Outlook – US Dollar Mixed Again

EUR/USD Technical Analysis

The euro has pulled back just a bit during the early trading session on Friday. But really, at this point in time, when you’re looking at this chart, the 1.16 level is probably a major support level based on market memory and the fact that the market would see that as resistance previously. So that being said, the market is likely to continue to see that as important not only due to the paths, but the fact that the 50 day EMA is racing towards there. If we break down below the 1.15 level then maybe the trend changes, but as things stand right now, this is a market that dips probably get bought into.

USD/JPY Technical Analysis

The US dollar has rallied against the Japanese yen again on Friday. But as you can see, the 200 day EMA sits right around the 148 level and the 148 level has been a major resistance barrier. Breaking above there opens up the possibility of moving to the 151 yen level, and I do think eventually we may see that. That being said, I believe that a short-term pullback could open up a move back down to the 50-day EMA near the 145 yen level.

Ultimately, I do like buying the dollar over the yen as the interest rate differential continues to favor the US dollar. And of course, the Bank of Japan will eventually have a problem with their bond market as we have seen several days where there have been no bids and that could be a major problem for them where they have to step in and start buying bonds, essentially quantitative easing.

AUD/USD Technical Analysis

The Australian dollar has been back and forth during most of the trading session on Friday as we continue to hang around the 0.6550 level. If we can get above the 0.66 level, then it opens up the possibility of a move to the 0.67 level. On the other hand, though, if we break down from here, pay attention to the 50 day EMA because it is basically a trend line at this point. And it currently sits just below the 0.65 level. Breaking down below could lead to further losses. My suspicion is that it would also be in the realm of a US dollar strengthening against most other currencies as well.

For a look at all of today’s economic events, check out our economic calendar.