Will the strength of the currency become clear? Keep a close eye on price movements during U.S. trading hours.
22.01.2025
- U.S. MBA Mortgage Applications Index
- UK Public Sector Net Debt
In yesterday's U.S. currency trading, the Canadian dollar traded sideways against the yen. The CAD/JPY pair fluctuated between 107.325 and 108.762. The hourly RSI remained stuck between 30 and 60.On the 4-hour chart, price action lacks direction as it fluctuates around the 200-day SMA, while the daily chart shows a return from the -3σ Bollinger Band to the centerline. We will be watching closely to see if the Canadian dollar’s direction becomes clearer during U.S. trading hours.
Among European currencies, the euro saw a seesawing trend against the Australian dollar. The EUR/AUD pair traded between 1.6584 and 1.6680. The market lacked direction, with the 200-period simple moving average (SMA) on the hourly chart providing support on the downside. On the 4-hour chart, the candlesticks are contracting into a triangle, while on the daily chart, the pair is facing resistance at the upper wick of a bullish candle.
Today’s schedule includes the Australian Westpac Leading Index at 8:30, the Malaysian Consumer Price Index at 13:00, the UK Public Sector Net Lending and the Malaysian BNM Overnight Policy Rate at 16:00, the South African Consumer Price Index and Taiwan’s Employment Statistics at 17:00, and South African Retail Sales at 20:00,at 9:00 PM, the U.S. MBA Mortgage Applications Index; at 10:30 PM, Canada’s Industrial Product Prices; at 12:00 AM, the U.S. Leading Economic Index; at 12:05 AM, remarks by ECB President Lagarde; and at 3:00 AM, the U.S. 20-year Treasury auction. We will carefully monitor price movements during U.S. trading hours to see if currency strength and weakness become clear.
Author: Keisuke Sakurai
