Market participants are likely to closely monitor the downside potential of the euro, which is facing resistance on the upside

Market participants are likely to closely monitor the downside potential of the euro, which is facing resistance on the upside

21.12.2022

In the previous day’s U.S. currency trading, the EUR/USD rose slightly as the Dollar Index fell to 104.1.The EUR/USD pair rose from 1.0577 to 1.0658. It rebounded with support from the 200-period simple moving average (SMA) on the hourly chart. However, on the 4-hour chart, a range-bound market centered around the 20-period moving average (MA) continues, and the pair still lacks a clear direction. Since it has not fallen below the 10-period MA on the daily chart, we will closely monitor whether this represents a mid-range consolidation within an ongoing uptrend.

European currencies fell as the euro weakened against the pound following the release of Germany’s November Producer Price Index (PPI) yesterday, which came in at -3.9%, worse than the market forecast of -1.8%. The EUR/GBP pair fell from 0.8771 to 0.8714. The decline halted as the pair found support at the 20-period moving average (MA) on the 4-hour chart.Technically, a divergence has formed on the 4-hour RSI for EUR/GBP, so traders should be cautious of a decline following a break below the 4-hour 20-period moving average.

Today’s schedule includes the German GfK Consumer Confidence Survey at 4:00 p.m. CET, the UK CBI Retail Trade Survey at 8:00 p.m. CET, and the U.S. MBA Mortgage Applications Index at 9:00 p.m. CET, followed by the Canadian Consumer Price Index and the U.S. Third-Quarter Current Account Balance at 10:30 p.m. EST,at 12:00 AM, the U.S. Consumer Confidence Index and Existing Home Sales; at 12:30 AM, U.S. Weekly Crude Oil Inventories; and at 3:00 AM, the U.S. 20-Year Treasury Auction. We will carefully monitor the downside potential of the euro, which is facing resistance on the upside.

Past Market Reports

1. 21.04.2026New

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

2. 20.04.2026New

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

3. 17.04.2026New

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

4. 16.04.2026New

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

5. 15.04.2026New

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

6. 14.04.2026

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

7. 13.04.2026

   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. 10.04.2026

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

9. 09.04.2026

   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. 08.04.2026

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