**EUR/USD, USD/JPY, and AUD/USD Forecast: US Dollar Attempts a Rally on Friday**
*Based on an analysis from Christopher Lewis (FXEmpire), with additional insights from other industry sources*
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As global financial markets wrapped up the first trading week of June, all eyes were on the US dollar and its performance against major currency pairs like the euro (EUR), Japanese yen (JPY), and Australian dollar (AUD). After a week marked by volatility, Friday brought further attempts by the US dollar to regain lost ground. Here is a comprehensive analysis of the latest trends, technical setups, and underlying drivers shaping the movements of EUR/USD, USD/JPY, and AUD/USD.
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## EUR/USD: Euro Struggles as Dollar Pushes Back
### Recent Performance
– The euro began Friday on the defensive, pressured by growing optimism surrounding the US dollar.
– Throughout the week, the EUR/USD pair fluctuated as traders reacted to a mix of economic indicators, central bank commentary, and global risk sentiment.
– The European Central Bank (ECB) maintained a cautious tone regarding monetary policy, underlying the region’s uncertainty.
### Technical Analysis
– The EUR/USD encountered resistance around the 1.0900 level, a psychological and technical hurdle.
– Absence of substantial bullish momentum suggests that bulls need to defend the 1.0800 region, a key support zone.
– Moving averages indicate a neutral to slightly bullish short-term trend, though weakness is emerging.
#### Key Technical Levels
– **Resistance:** 1.0920, 1.0950, 1.1000
– **Support:** 1.0850, 1.0800, 1.0780
### Fundamental Drivers
#### US Data Boosts the Dollar
– Stronger-than-expected Non-Farm Payrolls (NFP) data on Friday provided fuel to the dollar.
– Market participants perceived the data as a signal that the Federal Reserve might maintain its higher interest rate stance longer than previously anticipated.
– The yield differential between US and European bonds supported the greenback.
#### European Weakness
– Recent euro area inflation prints reinforced expectations that the ECB might remain on hold or move cautiously, even as economic growth lags.
– Geopolitical concerns and energy market volatility continued to weigh on euro gains.
### Forward-Looking Commentary
– Near-term, the EUR/USD appears susceptible to further declines if the dollar uptrend continues.
– Traders will monitor US CPI data, ECB meeting minutes, and related macroeconomic releases for additional direction.
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## USD/JPY: The Yen Faces Persistent Selling Pressure
### Market Dynamics
– The US dollar advanced against the Japanese yen, capitalizing on relative monetary policy divergence.
– The Bank of Japan (BOJ) reaffirmed its commitment to ultra-loose monetary policy, maintaining historically low interest rates.
– Investors favored the dollar as US Treasury yields climbed.
### Technical Analysis
– USD/JPY established a short-term base above
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