Should investors be wary of further downside potential as the euro/dollar pair attempts to hit a new low again?
21.11.2024
- CBI Business Survey (UK)
- Manufacturing and Mining Production
In the U.S. currency market yesterday, the U.S. dollar rose against the yen after the MBA Mortgage Applications Index, released yesterday, improved to 1.7% from the previous reading of 0.5%. The USD/JPY pair rose from 154.413 to 155.878, with the rise tracking the 10-period moving average (MA) on the hourly chart.On the 4-hour chart, the 20-period moving average is providing support at the lower end, and since the daily chart continues to show higher lows, we should remain vigilant regarding market strength and weakness during U.S. trading hours.
Among European currencies, the euro weakened against the U.S. dollar. The EUR/USD pair fell from 1.0609 to 1.0506. The price dropped to the -3σ level of the hourly Bollinger Bands. On the 4-hour chart, the pair is trading below the 20-period moving average, and on the daily chart, it is falling with enough momentum to potentially hit a new low. We will need to monitor whether the euro continues to weaken and watch for signs of strength or weakness during European trading hours.
Today’s schedule includes remarks by Bank of Japan Governor Ueda at 14:10, remarks by RBA Governor Block at 17:00, the UK CBI Business Survey at 20:00, the TCMB policy rate and statement in Turkey, and at 22:30, Canada’sIndustrial Production, Canada’s Raw Materials Price Index, U.S. Initial Jobless Claims, and the U.S. Philadelphia Fed Business Outlook Index; at 10:45 PM, remarks by U.S. Federal Reserve Bank of Cleveland President Hammack; at 11:00 PM, remarks by UK MPC member Mann; and at 12:00 AM, the U.S. Leading Economic Index and U.S. Existing Home Sales.We should remain cautious about the downside potential for the EUR/USD pair as it attempts to break to new lows once again.
Author: Keisuke Sakurai
