Should we keep an eye on the euro's upside potential against the Australian dollar?
07.07.2025
- Germany: Industrial Production
- Japan Economic Sentiment Index
Last weekend, the Canadian dollar weakened against the yen. The CAD/JPY pair fell from 106.705 to 106.103. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. On the 4-hour chart, the price pulled back after touching the +3σ line of the Bollinger Bands, and the daily chart shows a similar price movement. We will be watching price action during U.S. trading hours to see if the Canadian dollar recovers at the start of the week.
Among European currencies, the euro rose against the Australian dollar. The EUR/AUD pair climbed from 1.7880 to 1.7990. An uptrend has emerged along the 10-period moving average (MA) on the hourly chart. On the 4-hour chart, prices have surged from the -3σ to the +3σ levels of the Bollinger Bands, and on the daily chart, the uptrend is continuing, supported by the 10-period MA.
Today’s economic indicators include Japan’s Monthly Labor Survey at 8:30 a.m., Japan’s Economic Sentiment Index at 2:00 p.m., Germany’s Industrial Production at 3:00 p.m., remarks by Nagel, President of the German Central Bank, at 5:00 p.m., the UK’s Halifax House Price Index, and Eurozone Retail Sales at 6:00 p.m. I intend to closely monitor the euro’s upside potential following its rise against the Australian dollar.
Author: Keisuke Sakurai
