Market participants are keeping a close eye on the upside potential of the U.S. dollar, which is facing resistance

Market participants are keeping a close eye on the upside potential of the U.S. dollar, which is facing resistance

20.05.2025

In U.S. trading yesterday, the U.S. dollar hit its lowest level of the day. The USD/CHF pair fell from 0.8371 to 0.8318. On the hourly chart, the price has moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, a gradual decline along the 20-period MA continues, while on the daily chart, the price has pulled back from the +3σ line of the Bollinger Bands.We will monitor the situation closely during today’s U.S. trading hours to see if the U.S. dollar continues to weaken, paying close attention to comments from key officials.

European currencies rose against the U.S. dollar after the April Harmonized Index of Consumer Prices (HICP) released yesterday remained unchanged from the previous month’s 2.2%.The EUR/USD pair rose from 1.1167 to 1.1288. The price extended from the centerline of the hourly Bollinger Bands to +3σ. On the 4-hour chart, the 200 EMA acted as support, driving the price higher. On the daily chart, the RSI is rising from around the 50 level. We will be watching to see if the euro continues to strengthen against the US dollar.

Today’s key economic indicators include the RBA policy rate and statement at 1:30 PM (AEST), RBA Governor Block’s press conference at 2:30 PM (AEST), Germany’s Producer Price Index at 3:00 PM (CET), the Eurozone Current Account Balance at 5:00 PM (CET), Canada’s Consumer Price Index at 9:30 PM (CET), and U.S. Federal Reserve Governor Collins’ remarks at 10:30 PM (CET):Remarks by Boston Fed President Collins, 23:00: Eurozone Consumer Confidence Index, 26:00: Remarks by St. Louis Fed President Musalem, and 7:45 the following day: New Zealand Trade Balance. We will carefully assess the upside potential for the US dollar, which is currently facing resistance.

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