**What Are Technical Indicators Signaling for EUR/USD, USD/JPY, and AUD/USD?**
*Based on content by Greg Michalowski (InvestingLive), with added research and insights*
As the trading day wraps up, forex traders commonly conduct thorough technical analysis to gauge possible market movements and pinpoint trading opportunities. Let’s examine how the end-of-day charts and technicals are shaping up for three of the most actively traded major currency pairs: EUR/USD, USD/JPY, and AUD/USD. This overview includes key support and resistance levels, recent price action, and additional insights to assist traders in forming well-grounded strategies.
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## EUR/USD Technical Outlook
### Recent Price Behavior
The EUR/USD pair is heavily influenced by macroeconomic events and the fundamental posture of the US Federal Reserve and the European Central Bank (ECB). Over the previous few sessions, euro bulls and bears have been locked in a tight battle, with the pair moving within a well-defined range. This consolidation comes after some previous sessions marked by increased volatility.
### Key Support and Resistance Levels
– **Immediate Resistance**
– The 200-hour moving average is seen as the immediate technical resistance. Traders are eying this level carefully; if the pair manages to close above it, this could strengthen the bullish outlook in the near term.
– Additional resistance is observed near 1.0700, which has previously capped euro advances.
– **Immediate Support**
– The 100-hour moving average serves as initial support.
– If selling picks up, price could test the recent swing low around 1.0650.
– Below this, further support appears at 1.0600, which represents a recent multi-day base and may attract buyers.
### Price Action and Technical Patterns
– The EUR/USD has shown consolidation, forming a possible sideways channel between 1.0650 and 1.0700.
– Momentum indicators, such as the Relative Strength Index (RSI), signal neither overbought nor oversold conditions, suggesting indecision for now.
– The pair’s inability to break and close above its 200-hour moving average highlights underlying buying hesitation.
### Strategy Considerations
– Traders may enter short positions near established resistance, targeting the support range for possible profits.
– Bulls may wait for a confirmed break and retest above 1.0700 as a trigger for further upside attempts.
### Macro Factors to Watch
– Economic releases from the Eurozone and upcoming comments from Fed officials could provide the volatility necessary to break the current range.
– Euro area inflation and US labor market data will likely impact direction.
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## USD/JPY Technical Analysis
### Recent Price Behavior
USD/JPY has displayed clear bullish momentum over recent weeks, breaking through established resistance levels as US yields rise and the Bank of Japan retains an accommodating policy. The pair’s uptrend is driven in part by the contrasting approaches of the Federal Reserve and the Bank of Japan towards monetary tightening and yield management.
### Key
Read more on AUD/USD trading.