Should investors be wary of further downside potential for the euro, which is showing weakness against the Oceania currencies?

Should investors be wary of further downside potential for the euro, which is showing weakness against the Oceania currencies?

09.05.2023

In the previous day's U.S. currency trading, the U.S. dollar edged slightly higher against the euro, causing the EUR/USD pair to decline.The EUR/USD pair fell from 1.1053 to 1.0998, breaking below the 75-period moving average on the 4-hour chart. Technically, while the daily RSI for EUR/USD is trending downward from just below 70, the candlesticks are showing a bullish divergence by forming higher highs. We will be watching closely to see if the US dollar strengthens against the euro heading into the latter half of the week.

European currencies fell against the Australian dollar after Germany’s 2024 real GDP growth forecast, released yesterday, was revised downward to 1.3% from the previous month. The EUR/AUD pair fell by approximately 140 pips from 1.6351 to 1.66205.This downward trend has continued into today’s Asian trading session. Since the EUR/AUD pair has been falling after touching the RSI 70 level on the weekly chart, it will be worth watching to see if the decline against the Australian dollar continues.

Today, during Asian trading hours, the UK Halifax House Price Index will be released at 15:00, followed by France’strade balance, and France’s current account balance at 15:00 Asia time; the U.S. NFIB Small Business Optimism Index at 19:00 European time; Mexico’s Consumer Price Index and Producer Price Index at 21:00; remarks by U.S. Federal Reserve Governor Jefferson at 21:30 U.S. time; remarks by U.S. Federal Reserve Bank of New York President Williams at 25:05; and a U.S. 3-year Treasury auction at 26:00.We should remain cautious about the downside potential for the euro, which is trading weakly against the Oceania currencies.

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