Should We Keep an Eye on the Euro’s Upside Potential?

Should We Keep a Close Eye on the Euro’s Upside Potential?

28.05.2025

In U.S. currency trading the previous day, the Canadian dollar rose against the yen. The CAD/JPY pair rose from 103.529 to 104.974. It moved from below the 20-period moving average on the hourly chart 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 pair is showing signs of a rebound after finding support at lower levels. We will need to monitor price movements during U.S. trading hours to see if the Canadian dollar will continue 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 Himinono, Deputy Governor of the Bank of Japan, at 9:00; the Australian Consumer Price Index at 10:30; the RBNZ policy rate and statement at 11:00; a press conference by RBNZ Governor Hawksby at 12:00;at 16:55, Germany’s employment statistics; at 20:00, the U.S. MBA Mortgage Applications Index; at 23:00, the U.S. Richmond Fed Manufacturing Index; at 26:00, the U.S. 5-year Treasury auction; and at 27:00, the release of the U.S. FOMC minutes.We want to carefully assess the upside potential of the euro, which has been rising.