Concerns over further downside potential for the U.S. dollar against the euro

Concerns over further downside potential for the U.S. dollar against the euro

27.04.2023

In yesterday’s U.S. currency trading, the U.S. dollar fell against the euro after the MBA Mortgage Applications Index, released yesterday, improved to 3.7% from the previous reading of -8.8%. The EUR/USD pair rose from 1.0968 to 1.1094, rebounding from support at the 75-period moving average on the 4-hour chart.On the daily chart, the EUR/USD pair continues to follow a solid uptrend along the 20-day moving average, and since no RSI divergence is observed, we should watch for further gains during European trading hours.

European currencies rose against the yen as the German GfK Consumer Confidence Index, released yesterday, recovered to -25.7 from -29.5 the previous month.The EUR/JPY pair rose from 146.454 to 147.881. It rebounded after touching the 75-period moving average (MA) on the 4-hour chart. The EUR/JPY is forming a triple top on the 4-hour chart, and the RSI is showing divergence. Therefore, we should be wary of a pullback during U.S. trading hours.

Today, at 4:00 PM, Turkey’s Economic Confidence Index; at 8:00 PM, the TCMB policy rate and statement; at 9:30 PM, U.S. initial jobless claims, U.S. Q1 GDP, and U.S. personal consumption;U.S. Core PCE Deflator, U.S. Pending Home Sales at 11:00 PM, U.S. Weekly Natural Gas Inventories at 11:30 PM, U.S. Kansas City Fed Manufacturing Activity Index at 12:00 AM, and a U.S. 7-Year Treasury Auction at 2:00 AM. We should remain cautious regarding the downside potential for the U.S. dollar, which has fallen against the euro.

Past Market Reports

1. 21.04.2026New

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

2. 20.04.2026New

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

3. 17.04.2026New

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

4. 16.04.2026New

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

5. 15.04.2026New

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

6. 14.04.2026

   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

7. 13.04.2026

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

8. 10.04.2026

   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?

9. 09.04.2026

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

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran