Should we keep a close eye on the rising euro?

Should we keep a close eye on the rising euro?

24.04.2024

In the U.S. currency market yesterday, the U.S. dollar fell against the euro despite a slight improvement in the Richmond Fed Manufacturing Index, which was released yesterday, from -11 the previous month to -7.The EUR/USD pair rose from 1.0638 to 1.0710, breaking above the 200-period simple moving average (SMA) on the hourly chart. A strong uptrend has emerged on the 4-hour chart, with the price breaking above the 75-period SMA with a bullish candle. Since the daily chart has broken above the recent high, we will be watching price action during European trading hours.

European currencies saw the euro strengthen during U.S. trading hours after Germany’s April manufacturing and services PMIs, released yesterday, both rose from the previous month. The euro/yen pair rose from 164.622 to 165.735, marking its third consecutive day of gains.On the 4-hour chart, a band walk along the +2σ line of the Bollinger Bands has been confirmed, and on the daily chart, the RSI remains just below 70, indicating that the upward trend is continuing. We will be watching closely to see if further gains occur during U.S. trading hours.

Today’s economic indicators include: Australia’s Q1 Consumer Price Index at 10:30, Turkey’s Economic Sentiment Index, Capacity Utilization Rate, and Housing Price Index at 16:00, remarks by Nagel, President of the German Federal Bank, at 16:00, Germany’s IFO Business Climate Index at 17:00, and the UK’sCBI Business Survey, at 8:00 PM the U.S. MBA Mortgage Applications Index, at 9:30 PM the U.S. MBA Mortgage Applications Index, at 9:30 PM Canada’s Retail Sales and U.S. Durable Goods Orders, at 11:30 PM U.S. Weekly Crude Oil Inventories, and at 2:00 AM the U.S. 5-Year Treasury Auction. I intend to closely monitor the trend of the rising euro.