All eyes are on whether the pound, which had been rising, will enter a corrective decline

All eyes are on whether the pound, which had been rising, will enter a corrective decline

21.11.2022

In the U.S. currency market last weekend, the Canadian dollar was the weakest currency from European trading hours through U.S. trading hours. The CAD/JPY pair fell by approximately 100 pips, from 105.416 to 104.339.On the 4-hour chart, a descending triangle is forming, with the upper boundary gradually lowering. If this pattern of lower highs continues into U.S. trading hours, there is a possibility the pair could break below the current support level at 104.353, so traders should be cautious of further downside potential.

Among European currencies, the pound—which had been showing strength against the U.S. dollar—consolidated near the upper boundary of its uptrend line. The GBP/USD pair traded within the 1.1854–1.1948 range as it sought direction, fluctuating above and below the 20-period moving average (MA) on the hourly chart throughout the day.During today’s Asian session, the pair broke below the 20-period moving average on the hourly chart and fell to 1.1845. Since GBP/USD is also breaking below the 20-period moving average on the 4-hour chart, we will be watching closely to see if it falls to the recent low of 1.1764 on the 4-hour chart.

Today, during European trading hours, the German Producer Price Index and Sweden’s Capacity Utilization Rate will be released at 16:00; Turkey’s Foreign Visitor Arrivals at 17:00; Hong Kong’s Consumer Price Index at 17:30; and at 18:05, the UK’sremarks by BOE Deputy Governor Kanlif, followed by the U.S. Chicago Fed National Activity Index at 22:30 U.S. time, Turkey’s central government debt at 23:30, the U.S. 2-year Treasury auction at 25:30,at 26:30, remarks by German Bundesbank President Nagel; and at 27:00, a U.S. 5-year Treasury auction. We will be watching closely to see if the pound, which had been rising, will enter a corrective decline.