Should We Keep an Eye on the Conflicting Trends in the Euro-Dollar Exchange Rate?
16.09.2024
- UK LightMove Housing Prices
- Europe: Trade Balance
Last weekend, the U.S. dollar saw a back-and-forth movement against the euro. The EUR/USD pair traded in a tight range between 1.1067 and 1.1102. On the hourly chart, the pair moved across the 20-period moving average, while on the 4-hour chart, it stalled near the +2σ level of the Bollinger Bands.On the daily chart, the price has shifted from below the 20-day moving average to above it, and with the RSI rising from the midpoint of 50, it will be worth watching to see if the euro will rise against the U.S. dollar.
Among European currencies, the pound fell against the yen. The GBP/JPY pair dropped from 186.180 to 184.412. The decline occurred as the pair was capped by the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the pair rebounded after touching the 20-period moving average, and on the daily chart, a band walk along the -2σ line of the Bollinger Bands has been confirmed. We will need to monitor price action during European trading hours to see if the pound will continue to decline against the yen.
Today’s economic indicators include the UK Rightmove House Price Index at 8:01, India’s Wholesale Price Index and Switzerland’s Producer Price Index at 15:30, and the Eurozone’strade balance at 15:30, Canada’s Manufacturing Production at 21:30, the U.S. NY Fed Manufacturing Index at 21:30, and Canada’s Existing Home Sales at 22:00. We want to carefully assess the direction of the euro/dollar pair, which is currently in a tight range.
Author: Keisuke Sakurai
