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 struggling to gain ground, recover during U.S. trading hours, or should we wait and see?

18.09.2024

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen despite the release of Canada’s August Consumer Price Index, which showed a year-over-year decline from 2.5% in the previous month to 2.0%. The CAD/JPY pair rose from 103.260 to 104.767, reaching just below the 200-period simple moving average (SMA) on the hourly chart.On the 4-hour chart, the price has rebounded from the -2σ Bollinger Band, and on the daily chart, it has recovered to just below the 10-day moving average.

European currencies saw the euro dip slightly against the U.S. dollar after the September ZEW Economic Sentiment Index, released yesterday, fell to 9.3 from 17.9 the previous month.The EUR/USD pair fell from 1.1146 to 1.1109, moving across 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 nominal trade balance at 8:50, Australia’s Westpac Leading Index at 9:30, the UK’s Consumer Price Index, Retail Price Index, and Producer Price Index at 15:00, South Africa’s Consumer Price Index at 17:00, and the Eurozone’sconstruction output, and the Eurozone CPI; at 8:00 PM, the US MBA Mortgage Applications Index; at 9:30 PM, US Housing Starts; at 11:30 PM, US Weekly Crude Oil Inventories; at 3:00 AM, the FOMC policy rate decision and statement; and at 3:30 AM, remarks by Fed Chair Powell.I intend to watch cautiously to see if the euro, which has been facing resistance on the upside, will recover during U.S. trading hours.