Market participants are watching for the direction of the euro/dollar pair at the start of the week, as it faces resistance

Market participants are watching for the direction of the euro/dollar pair at the start of the week, as it faces resistance

28.08.2023

Last weekend, the U.S. dollar temporarily weakened against the euro after the final reading of the University of Michigan’s August Consumer Sentiment Index, released on the 25th, came in at 69.5—below the market forecast of 71.2.The EUR/USD pair rebounded from this month’s low of 1.0765 to 1.0841, breaking above the 75-period moving average (MA) on the hourly chart. However, the dollar’s weakness did not last long, and the EUR/USD pair gradually lost momentum, retreating to 1.0792. Since the downtrend along the 20-period MA continues on the 4-hour chart, traders should remain cautious regarding price movements during European trading hours.

European currencies saw the euro fluctuate against the Swiss franc after Germany’s August IFO Business Climate Index, released last weekend, came in at 85.7—below the market forecast of 86.8—marking a further deterioration from the previous month.The EUR/CHF pair is trading between 0.9544 and 0.9569, with its upside capped by the 75-period moving average on the 4-hour chart. On the daily chart, although the pair remains in a downtrend, the daily RSI is showing divergence, so we will keep a close eye on the euro’s price action.

Today’s schedule includes Norwegian retail sales at 3:00 PM, Eurozone money supply at 5:00 PM, Brazil’s consumer confidence index and Mexico’s trade balance at 9:00 PM,remarks by German Bundesbank President Nagel, Brazil’s bank lending data at 9:30 PM, the U.S. Dallas Fed Manufacturing Index at 11:30 PM, the U.S. 6-month bill auction at 12:30 AM, remarks by U.S. Fed Vice Chair Bar at 1:30 AM, and the U.S. 5-year Treasury auction at 2:00 AM.We will carefully assess the direction of the EUR/USD pair at the start of the week, as it faces resistance on the upside.

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