Attention is turning to the direction of European currencies, which are currently weakening against Oceania currencies

Attention is turning to the direction of European currencies, which are showing weakness against Oceania currencies

28.12.2022

Yesterday, the U.S. dollar showed strength 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, 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 to 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 has been testing lower levels. Since a triple top pattern has formed on the 4-hour chart, traders should be on guard for a potential decline heading into the U.S. trading session.

Today, at 4:00 p.m. CET, Swedish household loans and the Swedish trade balance will be released,at 6:00 PM, the Swiss Investor Confidence Index; at 8:00 PM, Brazilian employment figures; at 8:30 PM, Indian money supply; and at 9:00 PM, South African trade balance. During U.S. trading hours, at 12:00 AM, pending home sales and the Richmond Fed Manufacturing Index are scheduled, followed by a U.S. 5-year Treasury auction at 3:00 AM.We will be watching the direction of European currencies, which are showing weakness, against the backdrop of Oceania currencies that have strengthened on the back of rising crude oil prices.