Attention is focused on the direction of European currencies, which are showing weakness against Oceania currencies.
28.12.2022
- U.S. Richmond Fed Manufacturing Index
- U.S. Existing-Home Sales Pending
Yesterday, the U.S. dollar traded firm against European currencies. The EUR/USD pair fell back from 1.0669 to 1.0611. However, on the long-term daily chart, the pair remains in a range-bound market just above the 10-day moving average (10MA), with no clear direction emerging.On the 4-hour chart, the 75-day moving average is acting as support, and the price is beginning to form a pattern where lows are gradually rising; therefore, we will be watching closely to see how the U.S. dollar performs during U.S. trading hours.
Among European currencies, the euro weakened against Oceania currencies. Although the EUR/AUD traded within a range of 1.5738–1.5821, it has been forming lower highs, indicating that its upward momentum is waning.During today’s Asian trading session, the EUR/AUD pair is testing lower levels. Since a triple top has formed on the 4-hour chart, traders should be wary of a potential decline heading into the U.S. trading session.
Today, at 16:00 European time, Sweden’s household loans and trade balance will be released; at 18:00, Switzerland’s investor confidence index; at 20:00, Brazil’s employment figures; at 20:30, India’s money supply;at 9:00 PM South African trade balance, and during U.S. trading hours at 12:00 AM U.S. pending home sales and the Richmond Fed Manufacturing Index, followed by a U.S. 5-year Treasury auction at 3:00 AM.We will be watching the direction of European currencies, which are trading weaker, against Oceania currencies that have been firming on the back of rising crude oil prices.
Author: Keisuke Sakurai
