Be on the lookout for characteristic price movements at the end of the month

Be on the lookout for characteristic price movements at the end of the month

26.08.2024

Last weekend, the U.S. dollar fell against the yen despite the fact that U.S. new home sales for July, released on the 23rd, rebounded to a 10.6% increase from the previous month’s 0.6% decline. The USD/JPY pair dropped from 146.474 to 143.860. The decline occurred after the price touched the 200-period EMA on the hourly chart.On the 4-hour chart, prices have fallen to the -3σ level of the Bollinger Bands, so we should watch for further weakness in the US dollar during US trading hours.

European currencies typically move in tandem, and in contrast to the strengthening Japanese yen, the Swiss franc weakened. The CHF/JPY pair fell from 171.742 to 169.502. It broke below the support line formed by the 200-period simple moving average (SMA) on the hourly chart and continued its decline. On the 4-hour chart, the pair has fallen from the +2σ to the -2σ levels of the Bollinger Bands, and on the daily chart, the 20-period moving average (MA) is emerging as a resistance level.

Today’s economic indicators include Singapore’s Industrial Production at 2:00 PM, Japan’s Economic Survey at 2:00 PM, Turkey’s Capacity Utilization Rate and Economic Survey at 4:00 PM, Germany’s IFO Business Climate Index at 5:00 PM, U.S. Durable Goods Orders at 9:30 PM, and the U.S. Dallas Fed Manufacturing Activity Index at 11:30 PM.While there are no major economic indicators or key speeches scheduled, we should remain vigilant regarding price movements driven by end-of-month flows.