Should investors be wary of further downside potential for the euro-pound pair?

Should investors be wary of further downside potential for the euro-pound pair?

24.04.2025

In the previous day's U.S. currency trading, the U.S. dollar strengthened during U.S. trading hours.The EUR/USD pair fell from 1.1439 to 1.1309. 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 dropped from around 70 to 35. The candlesticks fell to the -2σ level of the Bollinger Bands. Similarly, on the daily chart, there has been a pullback from the +2σ level of the Bollinger Bands. We will need to watch for signs of whether the US dollar will continue to rise against the euro.

Among European currencies, the euro continued to decline against the pound. The EUR/GBP pair fell 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 3:00 PM, France’s consumer confidence index at 3:45 PM, Germany’s IFO business climate index at 5:00 PM, remarks by Nagel, President of the German Federal Bank, at 9:00 PM, U.S. initial jobless claims and durable goods orders at 9:30 PM,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 of the euro-pound pair, which has continued to decline.

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