Should We Keep a Close Eye on the Correction in the EUR/AUD Pair Following Its Continuous Rise?

Should We Keep a Close Eye on the Correction in the EUR/AUD Pair Following Its Continuous Rise?

09.04.2025

In the previous day’s U.S. currency trading, the U.S. dollar weakened against the yen. The USD/JPY pair fell from 148.103 to 145.981. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the RSI fell from 53 to 32. On the daily chart, the pair has pulled back, with the 10-day moving average capping its upside. We will need to pay close attention to comments from key officials to see if the U.S. dollar continues to weaken during today’s U.S. trading session.

Among European currencies, the euro made significant gains against Oceania currencies. The EUR/AUD pair rose from 1.7958 to 1.8418. It rebounded from the -2σ to +2σ levels of the hourly Bollinger Bands. On the 4-hour chart, the pair is rising along the 20-period moving average, and on the daily chart, it has extended its gains for five consecutive days.Since the RSI on the daily chart has risen to 83, traders should watch for a potential pullback correction during U.S. trading hours.

Today’s economic indicators include the RBNZ policy rate and statement at 11:00 (NZ time), the Japanese Consumer Sentiment Index at 14:00, remarks by Bank of Japan Governor Ueda at 15:15, the U.S. MBA Mortgage Applications Index at 20:00, U.S. Wholesale Inventories at 23:00,at 23:30, U.S. weekly crude oil inventories; at 24:00, remarks by U.S. Richmond Fed President Barkin; at 26:00, a U.S. 10-year Treasury auction; and at 27:00, the release of the U.S. FOMC minutes.We will be closely monitoring price movements as the EUR/AUD pair undergoes a correction following its recent string of gains.