Caution over downside potential for weakening European currencies

Caution over downside potential for weakening European currencies

23.05.2022

Last weekend, the U.S. dollar strengthened against the euro, with the EUR/USD pair falling by approximately 60 pips from 1.059 to 1.053. However, the pair has rebounded during today’s Asian trading session. Since the rebound is being supported by the 20-period moving average on the 4-hour chart, we will closely monitor whether the upward trend continues and breaks through this month’s high of 1.064.Additionally, since the US dollar is showing similar price action against the pound, we should keep an eye on the upside potential for the US dollar.

Among European currencies, the euro is trading in a tight range against the Australian dollar, with the EUR/AUD pair falling approximately 170 pips from 1.508 to 1.491. Technically, the EUR/AUD pair is trading just above the 20-day moving average on the daily chart, and whether it breaks below the recent low of 1.488 will be the key indicator for determining whether a downtrend has begun.

Today, at 4:00 p.m. CET, Turkey’s Economic Sentiment Survey and Capacity Utilization Rate will be released, followed by Germany’sThe IFO Business Climate Index at 17:00, the Turkish Housing Price Index at 20:30, the U.S. Chicago Fed National Activity Index at 21:30 U.S. time, remarks by Bank of England Governor Bailey and German Bundesbank President Nagel at 23:15, and remarks by Atlanta Fed President Bostic at 25:00 are scheduled.We should be wary of further downside potential for European currencies, which are currently showing weakness.

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?