All eyes are on whether the euro-dollar pair, which appeared poised to break below support, will maintain its upward momentum

All eyes are on whether the euro-dollar pair, which appeared poised to break below support, will maintain its upward momentum

07.11.2022

In the U.S. currency markets last weekend, the U.S. dollar became the weakest currency after the October U.S. employment report released on Friday, the 4th, showed the unemployment rate rising to 3.7% from 3.5% the previous month. The USD/JPY pair fell by just under 2 yen, from 148.390 to 146.554.Technically, the pair broke below a descending pennant that had formed during the downtrend on the 4-hour chart. Since it fell without reaching the 61.8% Fibonacci retracement level drawn from the recent high and low, caution is advised regarding further downside.

European currencies saw limited downside as the Eurozone and German services PMI figures released last Friday matched market expectations; coupled with weakness in the U.S. dollar, the EUR/USD pair rose 200 pips from 0.9755 to 0.9966.Although the EUR/USD pair briefly dipped below the retest level of its downtrend line, it recovered and broke above the recent 4-hour high of 0.9912 with a real body candle. We will be watching for signs of further upside momentum.

Today, at 3:45 PM, Switzerland’s unemployment rate; at 4:00 PM, Germany’s industrial production, the UK’s Halifax house price index, and Norway’s manufacturing production; at 5:00 PM, Switzerland’s foreign exchange reserves; at 5:30 PM, Hong Kong’s foreign exchange reserves;17:40: Remarks by ECB President Lagarde (EU), 18:30: Investor Sentiment Index (EU), 25:30: 6-month Treasury bill auction (US), 29:00: Consumer credit balance (US), and 29:40: Remarks by Mester, President of the Cleveland Fed (US). I intend to watch the market cautiously to see if the EUR/USD pair, which appeared poised to break below support, can maintain its rebound.

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?