Should we keep a close eye on the euro’s upside potential?

Should we keep a close eye on the euro’s upside potential?

28.05.2025

In yesterday’s U.S. currency trading, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 103.529 to 104.974. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it.On the 4-hour chart, the candlesticks have risen to the +3σ level of the Bollinger Bands, and on the daily chart, the price has found support at the lower end and is showing signs of a rebound. We will need to monitor price movements during U.S. trading hours to see if the Canadian dollar continues to hit new highs.

European currencies rose, with the euro gaining against the Australian dollar after the Eurozone’s May business sentiment index, released yesterday, improved to 94.8 from 93.6 the previous month.The EUR/AUD pair rose from 1.7526 to 1.7627. The rise followed the 10-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has moved from below the 20-period MA to above it, while on the daily chart, it is currently searching for direction just below the 20-period MA.

Today’s schedule includes remarks by Bank of Japan Deputy Governor Himinono at 9:00, Australia’s Consumer Price Index at 10:30, the RBNZ’s policy rate decision and statement at 11:00, a press conference by RBNZ Governor Hawkesbee at 12:00, and Germany’semployment statistics at 4:55 PM, the U.S. MBA Mortgage Applications Index at 8:00 PM, the U.S. Richmond Fed Manufacturing Index at 11:00 PM, a U.S. 5-year Treasury auction at 2:00 AM, and the release of the U.S. FOMC minutes at 3:00 AM. We will carefully assess the upside potential of the euro, which has been rising.

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