Should investors be wary of further downside potential as the euro/dollar pair attempts to hit a new low again?

Should investors be wary of further downside potential as the euro/dollar pair attempts to hit a new low again?

21.11.2024

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen after the U.S. 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 form 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 the euro’s strength or weakness during European trading hours to see if it continues to weaken.

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 midnight, the U.S. Leading Economic Index and U.S. Existing Home Sales.We should remain cautious about the downside potential for the euro/dollar pair as it attempts to break to new lows again.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed