US Dollar Shows Strength: EUR/USD, USD/JPY and AUD/USD Technical Analysis
EUR/USD Technical Analysis
The EUR/USD initially attempted to rally during the early hours, only to retract gains, suggesting a period of consolidation. Given the previous swift decline to the 1.08 level, this digestion phase seems reasonable. Critical resistance lies at the 200 day EMA near 1.09. A break above could urge the market towards 1.10. Conversely, slipping below 1.08 might open a decline to 1.07, indicating the market's need for stabilization.
USD/JPY Technical Analysis
The USD/JPY shows bullish movements after an initial decline. It’s smashing towards the 150 yen level yet again. A clear breakout above 150.50 might signal significant upward momentum, fueled by a favorable interest rate differential for the US dollar. The Bank of Japan’s stance on maintaining low interest rates further entrenches this carry trade scenario.
AUD/USD Technical Analysis
The AUD/USD attempted a minor rally, yet bears still dominate the market. This situation mirrors the EUR/USD, reflecting mixed market conditions. Following a notable drop to the 0.6650 level, it’s significant to ascertain if a floor can develop between the 50 day and 200 day EMA. Failure to maintain above 0.6650 suggests potential broader declines against the USD.
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