Should we keep an eye on the direction of the U.S. dollar, which is finding support at lower levels?

Should we keep an eye on the direction of the U.S. dollar, which is finding support at lower levels?

19.05.2022

Yesterday, the U.S. dollar strengthened against the euro, causing the EUR/USD pair to fall from 1.056 to 1.045. Since the EUR/USD pair continues to decline on the daily chart, with its upside capped by the 20-day moving average (MA), we should remain cautious about the downward trend until the price breaks above 1.056—the level near the daily 20-day MA—with a solid candle body.

European currencies came under pressure from the US dollar’s firm performance, with GBP/USD falling by approximately 170 pips from 1.250 to 1.233. Although GBP/USD rose above its recent high of 1.239 on the 4-hour chart, it pulled back yesterday. The downward trend will remain intact until the pair breaks above this month’s high of 1.263, so we will be watching closely to see if it can surpass that level.

Today’s schedule includes the release of the UK CBI Business Survey at 19:00 CET, the ECB Governing Council minutes at 20:30 CET, and at 21:30 EST, theCanadian Industrial Product Prices and Canadian Raw Materials Price Index, U.S. Initial Jobless Claims and the U.S. Philadelphia Fed Business Outlook Index at 21:30, U.S. Existing Home Sales, the U.S. Leading Economic Index, and U.S. Weekly Natural Gas Inventories at 23:00, and remarks by U.S. Minneapolis Fed President Kashkari at 29:00. We will be watching the direction of the U.S. dollar, which has been holding steady.

Past Market Reports

1. 22.04.2026New

   Will interest grow in the upside potential of the Swiss franc, which has risen against the yen?

2. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

3. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

4. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

5. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

6. 15.04.2026

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

7. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

8. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

9. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

10. 09.04.2026

    Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?