Should We Be Wary of Further Downside Potential for the Euro-Pound Pair?
24.04.2025
- Remarks by Nagel, President of the German Central Bank
- U.S. Durable Goods Orders
In U.S. currency trading the previous day, the U.S. dollar strengthened during U.S. trading hours. The EUR/USD pair fell from 1.1439 to 1.1309. It moved from above the 20-period moving average (MA) on the hourly chart to below it.On the 4-hour chart, the RSI fell from around 70 to 35. The candlesticks dropped to the -2σ level of the Bollinger Bands. Similarly, on the daily chart, the price has pulled back from the +2σ level of the Bollinger Bands. We will need to monitor the direction closely to see if the U.S. dollar will continue to rise against the euro.
Among European currencies, the euro continued to fall against the pound. The euro/pound exchange rate dropped from 0.8583 to 0.8527.On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the decline along the 20-period MA continues, while on the daily chart, the price is barely finding support at the 20-period MA. We need to watch closely during today’s European trading session to see if the price will fall below the daily 20-period MA support line.
Today’s economic indicators include Japan’s machine tool orders at 15:00, France’s consumer confidence index at 15:45, and Germany’sIFO Business Climate Index at 17:00, remarks by German Bundesbank President Nagel at 21:00, U.S. initial jobless claims and U.S. durable goods orders at 21:30,at 22:00, remarks by BOE Deputy Governor Lombardelli; at 23:00, U.S. existing home sales; at 23:30, U.S. weekly natural gas inventories; and at 26:00, a U.S. 7-year Treasury auction.We should pay close attention to the downside potential for the euro/pound pair, which has continued to decline.
Author: Keisuke Sakurai
