Should we focus on the euro’s upside potential against the Australian dollar?

Should we focus on the euro’s upside potential against the Australian dollar?

07.07.2025

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 formed 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 continues, 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 German Bundesbank President Nagel 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.

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