All eyes are on whether the U.S. dollar, which has been facing resistance at higher levels, will attempt to rise
27.01.2023
- France: Consumer Confidence Index
- U.S. Core PCE Deflator
In the previous session, the US dollar traded in a tight range against the pound, with GBP/USD fluctuating between 1.2340 and 1.2430. On the daily chart, GBP/USD appears to be forming a double top after breaking above the 200-day SMA. Since the 75-day MA is acting as a key resistance level on the weekly chart, we will be watching closely to see if the US dollar gains ground during US trading hours.
European currencies saw the euro weaken against the U.S. dollar, with the EUR/USD pair falling by about 80 pips from 1.0928 to 1.0848.Yesterday’s pullback pushed the EUR/USD back to levels seen two weeks ago, causing the Bollinger Bands on the 4-hour chart to flatten out. On the daily chart, the RSI is showing signs of divergence, so traders should be on the lookout for a potential decline in the EUR/USD during European trading hours.
Today, at 4:00 p.m. CET, Norway’s retail sales and Sweden’s retail sales will be released,at 4:30 PM, the Hungarian unemployment rate; at 4:45 PM, the French consumer confidence index; and at 9:00 PM, the trade balance. During U.S. trading hours, at 10:30 PM, U.S. personal income and the U.S. core PCE deflator are scheduled, followed by pending home sales and the University of Michigan consumer sentiment index at midnight, and the Canadian fiscal balance at 1:00 AM.With the US dollar facing resistance on the upside, we will carefully monitor whether it attempts to rally.
Author: Keisuke Sakurai
