Should we keep an eye on the direction of the U.S. dollar, which is facing resistance at higher levels?

Should we keep an eye on the direction of the U.S. dollar, which is facing resistance at higher levels?

04.10.2024

In yesterday’s U.S. currency trading, the U.S. dollar fluctuated against the yen after the August U.S. durable goods orders report, released yesterday, showed no change from the previous month’s 0.0%. The USD/JPY pair traded between 146.203 and 147.240, with price action centered around the 20-period moving average on the hourly chart.During today’s Asian session, the pair has broken below the 20-period moving average and fallen to the -3σ level of the Bollinger Bands. We will be watching closely to see if the US dollar continues to weaken against the yen.

European currencies saw the euro edge lower against the U.S. dollar after the Eurozone’s August Producer Price Index (PPI), released yesterday, came in at -2.3% year-on-year, a further decline from the previous month’s -2.1%.The EUR/USD pair fell from 1.1048 to 1.1008. It faced resistance at the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is trading below the 10-period MA, indicating heavy resistance on the upside. On the daily chart, the pair is on the verge of breaking below the 75-period MA support line, so traders should pay close attention to market strength and weakness during U.S. trading hours.

Today’s schedule includes the Philippine Consumer Price Index at 10:00, India’s Services PMI at 14:00, Singapore’s Retail Sales at 14:00, Switzerland’s Employment Statistics at 14:45, France’s Industrial Production at 15:45, remarks by MPC member Pill at 16:55, and the UK’sConstruction PMI, Mexico’s employment data at 9:00 PM, U.S. employment data at 9:30 PM, remarks by U.S. Fed Chair Williams (NY Fed) at 10:00 PM, Canada’s Ivey PMI at 11:00 PM, remarks by U.S. Fed Chair Goolsbee (Chicago Fed) at 11:30 PM, and Brazil’s trade balance at 3:00 AM.We will carefully assess the direction of the US dollar, which is facing resistance on the upside.