Will the falling euro-dollar pair rebound? Keep an eye on the direction.

Will the falling euro-dollar pair rebound? Keep an eye on the direction.

19.04.2024

In the U.S. currency market yesterday, the U.S. dollar faced resistance as the U.S. March Leading Economic Index, released yesterday, deteriorated from 0.1% the previous month to -0.3%. The USD/JPY pair rose from 153.963 to 154.667 before plummeting.It fell as low as 153.589. USD/JPY found support just below the 200-period EMA on the hourly chart and is now engaged in a battle around the 20-period MA on the 4-hour chart. On the daily chart, it remains above the 10-period MA, and with no particular divergence visible, traders should watch for a continued upward trend.

European currencies fell against the U.S. dollar as the euro dropped following yesterday’s release of the seasonally adjusted European current account balance for February, which fell to €29.5 billion from €39.4 billion the previous month.The EUR/USD pair fell from 1.0689 to 1.0641, breaking below the 20-period moving average on the hourly chart. On the 4-hour chart, the RSI is in an uptrend but has not yet formed higher highs, while on the daily chart, the RSI stands at 34. We will need to monitor price action during U.S. trading hours to see if the euro’s decline continues.

Today’s economic indicators include Japan’s Consumer Price Index at 8:30, Malaysia’s trade balance at 13:00, UK retail sales and Germany’s Producer Price Index at 15:00, remarks by BOE Deputy Governor Ramsden and BOE Deputy Governor Breeden at 23:15, and remarks by U.S. Federal Reserve Governor Goolsbee at 23:30:Chicago Fed President, at 1:30 AM: UK MPC Member Mann’s remarks, and at 4:00 AM: German Bundesbank President Nagel’s remarks. Keep an eye on the direction of the EUR/USD pair to see if it will rebound from its recent decline.