Keep an eye on the U.S. dollar, which is rising in tandem with the Dollar Index rebounding to 106

Keep an eye on the U.S. dollar, which is rising in tandem with the dollar index rebounding to 106.

29.04.2024

Last weekend, the U.S. dollar rose after the March U.S. personal income figures, released on the 26th, showed an increase from 0.3% to 0.5%.The EUR/USD pair fell from 1.0752 to 1.0673, dropping from the +3σ to the -3σ levels on the hourly Bollinger Bands. On the 4-hour chart, the 200 EMA acted as resistance, triggering a pullback. On the daily chart, the pair entered a downtrend after touching the 20 MA. We will be watching closely to see if the US dollar continues to strengthen against the euro.

European currencies fell, with the euro dropping against the pound for the fourth consecutive day, partly due to France’s April consumer confidence index falling to 90 from 91 the previous month.On the hourly chart, the EUR/GBP pair fell as its upside was capped by the 200-day SMA. On the 4-hour chart, the price has moved from above the 20-day MA to below it and has already broken below the 200-day SMA. On the daily chart, the pair has fully retraced last week’s gains, so we should remain cautious of a continued decline during European trading hours.

Today's economic indicators include Sweden's real GDP at 3:00 PM,at 4:00 PM, Turkey’s Economic Confidence Index; at 6:00 PM, the Eurozone Consumer Confidence Index, Eurozone Economic Sentiment, and Eurozone Manufacturing PMI; at 8:00 PM, Brazil’s General Price Index; at 9:00 PM, Germany’s Consumer Price Index; at 11:30 PM, the U.S. Dallas Fed Manufacturing Activity Index; and at 12:30 AM, the U.S. 6-month Treasury bill auction.We intend to closely monitor the U.S. dollar, which is rising in tandem with the Dollar Index rebounding to 106.