Should We Keep an Eye on the Upside Potential of the Euro, Which Continues to Rise?

Should We Keep an Eye on the Upside Potential of the Euro, Which Continues to Rise?

29.05.2024

In the U.S. currency market the previous day, the U.S. dollar faced resistance throughout the day. The GBP/USD pair rose from 1.2762 to 1.2800, trading within a range supported by the 20-period moving average on the hourly chart.On the 4-hour chart, the pair is trading along the +2σ line of the Bollinger Bands. A similar pattern is evident on the daily chart; with the RSI just below 70, traders should be on the lookout for a pullback during European trading hours.

European currencies rose against the yen as Germany’s April wholesale price index, released yesterday, improved year-over-year from the previous month’s -3.0% to -1.8%.The euro/yen pair rose from 170.169 to 170.797, trading above the 20-period moving average on the hourly chart. On the 4-hour chart, a band walk along the +2σ line of the Bollinger Bands has been confirmed, and on the daily chart, prices are trading above the 10-period moving average; therefore, we will be closely monitoring the potential for further gains during European trading hours.

Today’s schedule includes the Australian Westpac Leading Index at 9:30, the New Zealand Business Confidence Index at 10:00, the Australian Consumer Price Index at 10:30, the Japanese Consumer Sentiment Index at 14:00, the GermanGFK Consumer Confidence Index and Sweden’s Retail Sales, at 3:45 PM the French Consumer Confidence Index, at 5:00 PM the Eurozone Money Supply, at 8:00 PM the U.S. MBA Mortgage Applications Index, at 8:30 PM Brazil’s Fiscal Balance,at 8:30 p.m., India’s money supply; at 9:00 p.m., Germany’s Consumer Price Index and Brazil’s employment statistics; at 11:00 p.m., the U.S. Richmond Fed Manufacturing Index; and at 3:00 a.m., the U.S. Federal Reserve’s Beige Book.We will cautiously monitor the upside potential of the euro, which continues to rise.