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

Should we keep an eye on the U.S. dollar, which is rising in tandem with the Dollar Index as it rebounds to 106?

29.04.2024

Last weekend, the U.S. dollar strengthened 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 of 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 closely monitoring whether the U.S. 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 is falling as its upside is capped by the 200-period simple moving average (SMA). On the 4-hour chart, the price has moved from above the 20-period moving average (MA) to below it and has already broken below the 200-period SMA. On the daily chart, the pair has fully retraced last week’s gains, so traders should be wary of a continued decline during European trading hours.

Today’s economic indicators include Sweden’s real GDP at 15:00, Turkey’s Economic Confidence Index at 16:00, the Eurozone Consumer Confidence Index at 18:00, the EurozoneBusiness Sentiment, and the Eurozone Manufacturing PMI; at 20:00, Brazil’s Composite Price Index; at 21:00, Germany’s Consumer Price Index; at 23:30, the U.S. Dallas Fed Manufacturing Activity Index; and at 24:30, a U.S. 6-month Treasury bill auction.We intend to cautiously monitor the U.S. dollar, which is rising in tandem with the Dollar Index, which has rebounded to 106.