Market participants are keeping a close eye on the upside potential for 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 yesterday’s U.S. trading session, the U.S. dollar hit its lowest level. 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 level 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 as the euro strengthened against the U.S. dollar following yesterday’s release of the April Harmonized Index of Consumer Prices (HICP), which remained unchanged from the previous month at 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 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 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.