Will the euro-dollar pair start moving even as volatility declines in U.S. trading hours, or will it remain on the sidelines?

Will the EUR/USD pair start moving even as volatility declines in U.S. trading hours, or will it remain on the sidelines?

24.11.2023

In the previous day’s U.S. currency trading, the U.S. market was closed for a holiday, so the U.S. dollar saw only minor price movements. The USD/JPY pair rose slightly from 148.891 to 149.692, returning above the 20-period moving average (MA) on the hourly chart.From a technical perspective, the USD/JPY pair has rebounded with a bullish candle featuring a lower wick, with the daily 75-day moving average (MA) acting as a support level, and is beginning to move upward toward the upper end of the daily 20-day MA. As U.S. markets will have a shortened trading session today, traders should be wary of sudden price movements caused by reduced volatility.

European currencies saw the euro rise slightly against the U.S. dollar after preliminary November PMI data for Germany, released yesterday, showed a recovery in both the manufacturing and services sectors compared to the previous month.The EUR/USD pair rose from 1.0881 to 1.0930, trading in a narrow range along the 20-period moving average on the hourly chart. However, on the daily chart, the RSI has reached 70, indicating overbought conditions, so traders should pay close attention to price movements during European trading hours.

Today’s economic indicators include German GDP and Turkey’s capacity utilization rate at 4:00 PM, the German IFO Business Climate Index at 6:00 PM, remarks by ECB President Lagarde at 7:00 PM, Mexico’s real GDP and Brazil’s FGV Consumer Confidence Index at 9:00 PM, Canadian retail sales at 10:30 PM, Mexico’s current account balance at 11:00 PM,and at 11:45 PM, US PMI. As this is the final day of the week and volatility is expected to decline during US trading hours, I’ll be watching to see if the EUR/USD pair makes a move.