Market participants remain cautious about the euro’s performance, as the rebound has not held and the currency continues to face resistance at higher levels

Market participants remain cautious about the euro’s performance, as the rebound has not held and the currency continues to face resistance at higher levels

04.10.2023

The US dollar emerged as the strongest currency in early US trading yesterday. The EUR/USD pair saw little movement but edged lower, falling from 1.0493 to 1.0448 and hitting a new low.Technically, the EUR/USD pair continues its downtrend along the daily 10-day moving average (MA). On the higher timeframe of the weekly chart, the RSI has not yet reached the oversold level of 30 and is holding a buffer around 34, so we will need to closely monitor whether the decline continues.

European currencies saw the euro temporarily fall against the yen ahead of remarks today by ECB President Lagarde.The euro/yen pair fell by approximately 2.6 yen, from 157.216 to 154.535. It briefly dipped below the support line of the weekly 20-day moving average (MA). However, the pair subsequently recovered to around the midpoint at 156.192 and remains above the weekly 20-day MA. Therefore, we will closely monitor the euro’s price movements during European trading hours.

Today’s schedule includes the French Services PMI at 4:50 PM, the German Services PMI at 4:55 PM, the Eurozone Services PMI and remarks by ECB President Lagarde at 5:00 PM, the UK Services PMI at 5:30 PM, the Eurozone Producer Price Index and Eurozone Retail Sales at 6:00 PM,the U.S. MBA Mortgage Applications Index at 8:00 PM, U.S. ADP Employment Report at 9:15 PM, U.S. Services PMI at 10:45 PM, U.S. Factory Orders, U.S. Durable Goods Orders, and U.S. ISM Non-Manufacturing PMI at 11:00 PM, remarks by U.S. Federal Reserve Governor Bowman at 11:25 PM, and U.S. weekly crude oil inventories at 11:30 PM.We will closely monitor the euro’s movements, as the rebound has not held and the currency continues to face resistance at higher levels.