With the EUR/USD pair reversing course from its strong rally and entering a downtrend, investors should watch for further downside potential

With the euro/dollar pair reversing course from its strong rally and entering a downtrend, investors should watch for further downside potential

14.03.2025

In yesterday’s U.S. trading session, the Canadian dollar weakened against the yen. The CAD/JPY pair fell from 103.284 to 102.054. The pair declined as it encountered resistance at the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the 75-period SMA is capping gains, and on the daily chart, the downtrend along the 10-period SMA continues. We should remain vigilant to see if the Canadian dollar’s weakness persists during U.S. trading hours.

Among European currencies, the euro fell against the U.S. dollar. The EUR/USD pair dropped from 1.0896 to 1.0822. The decline continued along the 20-period moving average on the hourly chart. On the 4-hour chart, the price has been ranging between the +2σ and -2σ lines of the Bollinger Bands, and on the daily chart, we are seeing a pullback from the +2σ line, similar to the 4-hour chart. We should keep a close eye on the direction of the euro, which has now fallen for two consecutive days.

At 4:00 PM, Germany’s Wholesale Price Index, the UK’s monthly GDP, Germany’s Consumer Price Index, the UK’s Industrial Production, and the UK’s Manufacturing Orders are scheduled to be released; at 4:45 PM, France’s Consumer Price Index; at 9:30 PM, Canada’s Manufacturing Sales and Wholesale Sales; and at 11:00 PM, the University of Michigan Consumer Sentiment Index.After a sharp rally, the EUR/USD pair has turned lower; traders should pay close attention to the downside potential.