With the euro facing resistance on the upside, investors should watch for downside potential

With the euro facing resistance on the upside, investors should watch for downside potential

01.04.2024

Last weekend, the U.S. currency market was quiet due to the Easter holiday, and the Canadian dollar traded in a narrow range against the yen. The CAD/JPY pair fluctuated between 111.582 and 111.900, closing with support at the 200-period SMA on the hourly chart.In Asian trading today, the pair has risen to 111.980, reaching the +2σ level of the 4-hour Bollinger Bands. We will be watching closely to see if the Canadian dollar continues to strengthen against the yen.

European currencies saw the euro dip slightly against the pound after France’s February Producer Price Index (PPI), released on March 29, worsened year-over-year from -5.1% in the previous month to -5.5%. The EUR/GBP pair fell from 0.8554 to 0.8522, moving across the 20-period moving average on the hourly chart.On the 4-hour chart, the EUR/GBP pair continues to decline along the -2σ line of the Bollinger Bands, and on the daily chart, it is trading below the centerline.

Today’s economic indicators include the Bank of Japan’s Tankan survey for the first quarter at 8:50, Indonesia’s Manufacturing PMI at 9:30, China’s Caixin Manufacturing PMI at 10:45, Indonesia’s Consumer Price Index at 13:00, Turkey’s Manufacturing PMI at 16:00,at 7:00 PM: Israel Manufacturing Production; at 10:45 PM: U.S. PMI Purchasing Managers' Index; at 11:00 PM: U.S. Construction Spending and U.S. ISM Manufacturing Index; at 7:10 AM the following day: Remarks by Kent, Deputy Governor of the RBA; and at 7:50 AM: Remarks by Cook, Member of the Federal Reserve Board. I intend to closely monitor the downside potential of the euro, which is facing resistance on the upside.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   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

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   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?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed