Will the euro, which has been facing resistance at higher levels, rebound during U.S. trading hours, or should we wait and see?

Will the euro, which has been facing resistance at higher levels, rebound during U.S. trading hours, or should we wait and see?

18.09.2024

In yesterday’s U.S. currency markets, the Canadian dollar rose against the yen despite the fact that Canada’s August Consumer Price Index, released yesterday, fell to 2.0% year-over-year from 2.5% the previous month. The CAD/JPY pair rose from 103.260 to 104.767.The price extended its rally to just below the 200-period SMA on the hourly chart. On the 4-hour chart, the price has rebounded from the -2σ level of the Bollinger Bands, and on the daily chart, it has recovered to just below the 10-period MA.

European currencies saw the euro dip slightly against the U.S. dollar after the September ZEW Economic Sentiment Index for the eurozone, released yesterday, fell to 9.3 from 17.9 the previous month.The EUR/USD pair fell from 1.1146 to 1.1109, with price action straddling the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is searching for direction just below the 10-period MA, while on the daily chart, it continues to trade above the 10-period MA.

Today’s schedule includes New Zealand’s current account balance at 7:45, Japan’s machinery orders and trade balance (at nominal value) at 8:50, Australia’s Westpac Leading Index at 9:30, and at 15:00, the UK’sConsumer Price Index, UK Retail Price Index, and UK Producer Price Index; at 17:00, South Africa’s Consumer Price Index; at 18:00, Eurozone Construction Output and Eurozone Consumer Price Index; at 20:00, the U.S. MBA Mortgage Applications Index; at 21:30, U.S.Housing Starts, at 23:30: U.S. Weekly Crude Oil Inventories, at 27:00: U.S. FOMC Policy Rate Decision and Statement, and at 27:30: Remarks by Fed Chair Powell. I’d like to watch the situation carefully to see if the euro, which has been facing resistance on the upside, will recover during U.S. trading hours.