Attention is focused on the direction of European currencies, which are trading weaker against Oceania currencies
28.12.2022
- Richmond Fed Manufacturing Index (U.S.)
- U.S. Existing-Home Sales Pending
Yesterday, the U.S. dollar traded firmer against European currencies. The EUR/USD pair fell back from 1.0669 to 1.0611. However, on the daily chart, the pair remains in a range-bound pattern 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 pair 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 21:00, South Africa’s trade balance; during U.S. trading hours at 24:00, U.S. pending home sales and the Richmond Fed Manufacturing Index; and at 27:00, a U.S. 5-year Treasury auction.We will be watching the direction of European currencies, which are trading weaker, as compared to Oceania currencies that have been firming on the back of rising crude oil prices.
Author: Keisuke Sakurai
