With the dollar index recovering but facing resistance at higher levels, attention is turning to the direction of the U.S. dollar

With the dollar index recovering but facing resistance at higher levels, attention is turning to the direction of the U.S. dollar

07.12.2023

In the previous day’s U.S. currency trading, while the Dollar Index recovered to 104.1, the U.S. dollar saw mixed results against the yen. USD/JPY remained range-bound between 148.886 and 147.492, with trading centered around the 20-period moving average (MA) on the hourly chart. During today’s Asian session, downward pressure has prevailed, pushing USD/JPY down to 146.704.On the daily chart, the 75-day moving average is acting as resistance, and with the RSI also trending downward, traders should pay close attention to price movements during U.S. trading hours.

Despite the improvement in the EU’s October retail sales figures released yesterday—which showed a year-on-year decline of 1.2% compared to the previous month’s 2.9% drop—the euro fell against the yen for the ninth consecutive day. From a technical perspective, the EUR/JPY pair has repeatedly broken well below the 75-day moving average, and the daily RSI continues its downward trend after rising above 70. We will be watching closely to see if the euro’s decline continues unabated during European trading hours.

Today, at 3:45 PM, Swiss employment figures; at 4:00 PM, German industrial production and UK Halifax house prices; at 4:45 PM, French trade balance; at 5:00 PM, Czech construction output; at 5:30 PM, Hong Kong foreign exchange reserves; at 7:00 PM, Eurozone Q3 GDP;at 9:00 PM: Mexico’s Consumer Price Index; at 9:30 PM: U.S. Challenger Layoff Announcements; at 10:30 PM: U.S. Initial Jobless Claims and Canada’s Housing Starts; at 12:00 AM: U.S. Wholesale Inventories; at 5:00 AM: U.S. Consumer Credit; and at 6:45 AM the following day: New Zealand’s Q3 Manufacturing Sales.We want to carefully assess the direction of the U.S. dollar, which is recovering but facing resistance at higher levels.

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