Keep an eye on the euro’s rising trend

Keep an eye on the euro’s rising trend

26.05.2022

In yesterday’s U.S. currency trading, the euro entered a corrective phase following its recent strength, with the EUR/USD pair falling by approximately 100 pips from 1.074 to 1.064. On the 4-hour chart, the EUR/USD is finding support at the 20-period moving average (MA), and as the retest of the 200-period moving average (SMA) is nearing completion, I intend to wait and see whether the pair will break above the recent high of 1.074 with a solid candle.

European currencies weakened as the ECB’s Financial Stability Report, released yesterday, stated that “global cost pressures could weaken the economic outlook for the euro area.”The EUR/JPY pair fell by approximately 120 pips from 136.19 to 134.98. However, it has been trending upward during today’s Asian trading session. Technically, the EUR/JPY pair could move in either direction until it breaks decisively above the recent daily high of 138.31, so caution is advised.

Today, during European trading hours, Turkey’s Economic Confidence Index will be released at 16:00, followed by the TCMB policy rate and statement at 20:00. During U.S. trading hours, Canadian retail sales, U.S. initial jobless claims, U.S. first-quarter GDP, and U.S. personal consumption will be released at 21:30,U.S. Core PCE Deflator at 21:30, U.S. Pending Home Sales at 23:00, U.S. Weekly Natural Gas Inventories at 23:30, U.S. Kansas City Fed Manufacturing Activity Index at 24:00, remarks by incoming Fed Vice Chair Brainard at 25:00, and a U.S. 7-year Treasury auction at 26:00.We will be keeping a close eye on the euro’s upward trend.

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?