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
- Rice and Durable Goods Orders
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 the direction closely to see if the US dollar continues 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,22:00 UK: Remarks by BOE Deputy Governor Lombardelli, 23:00 US: Existing Home Sales, 23:30 US: Weekly Natural Gas Inventories, and 02:00 US: 7-Year Treasury Auction. We should pay close attention to the downside potential of the euro-pound pair, which has continued to decline.
Author: Keisuke Sakurai
