EUR/USD, USD/JPY and AUD/USD Forecast – US Dollar Strengthens After Israeli Airstrikes

EUR/USD Technical Analysis

The euro has pulled back just a bit during early trading on Friday to reach towards the 1.15 level again, dropping about three quarters of a percent as we head into the US session. This is an area that previously had been resistant, so we’ll have to wait and see if it holds out support. But as word got out that Israel had attacked Iran over the evening hours, the US dollar started to strengthen. So, while this could lead to further selling right now, we’re still pretty much in a wait-and-see attitude.

USD/JPY Technical Analysis

The US dollar has turned around against the Japanese yen, and this is a place where I do think that the US dollar will eventually take off, but we need to get above the 145 yen level. It is a bit interesting that the Japanese yen, considered to be one of the premier safety currencies, got crushed by the US dollar in the middle of all of this. So, I don’t know that much has changed. I think we’re still in a range between 142 yen, and somewhere right above 145 yen, the 50-day EMA being there also offers resistance.

AUD/USD Technical Analysis

The Australian dollar has crumbled pretty hard during the trading session as well. And in fact, this might be one of the more decisive candlesticks in a while. We’re still technically in, for lack of a better description, a channel going higher, but it’s more or less just been choppy sideways action. I suppose if you really try, you can find enough points that touch to make a channel. But at this juncture, it is a market that I think will continue to be very noisy and loud.

With that being the case, I think until the trend changes, and it really hasn’t, you have to assume there’ll be buyers on dips. I also think this is going to be a very difficult and noisy market to trade, mainly due to the fact that the Australian dollar is considered risk on and of course, the Australian dollar is highly levered to the Chinese economy.

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