Should we be wary of the downside potential for the euro/yen pair, which is facing resistance on the upside?
28.08.2024
- Europe: Money Supply
- U.S. Weekly Crude Oil Inventories
In yesterday's U.S. trading session, the U.S. dollar fell slightly against the euro. The EUR/USD pair rose from 1.1149 to 1.1189. The 75-period moving average on the hourly chart provided support, triggering a rebound. On the 4-hour chart, the pair rebounded after touching the 20-period moving average, and on the daily chart, the RSI has risen to 72. We will need to monitor whether the U.S. dollar continues to weaken during U.S. trading hours.
Despite the revision of Germany’s second-quarter GDP, released yesterday, from a year-on-year decline of 0.1% to a 0.0% increase, the euro fell against the yen.The EUR/JPY pair fell from 162.167 to 160.696. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the 75-period MA is acting as a resistance level, and on the daily chart, the downward trend following the pullback from the 200-period simple moving average (SMA) continues.
Today’s economic indicators include the Australian Consumer Price Index at 10:30, the German GfK Consumer Confidence Survey at 15:00, remarks by Fed Governor Waller at 14:15, the French Consumer Confidence Index at 15:45, and Turkey’s trade balance at 16:00,17:00: Eurozone Money Supply; 20:00: U.S. MBA Mortgage Applications Index; 21:15: U.K. Bank of Manchester MPC Member Remarks; 23:30: U.S. Weekly Crude Oil Inventories; and 7:00 the following day: U.S. Bostic: Atlanta Fed President Remarks. We should remain highly vigilant regarding the downside potential for the EUR/JPY pair, which is facing resistance on the upside.
Author: Keisuke Sakurai
