Market participants are keeping a close eye on the euro’s potential for recovery amid its recent weakness
16.07.2025
- Europe: Trade Balance
- Canada: Housing Starts
In yesterday's U.S. currency trading, the U.S. dollar rose against the euro. The EUR/USD pair fell from 1.1692 to 1.1592. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it. The sharp decline following the release of the U.S. CPI data was particularly significant, and on the 4-hour chart, the price is falling as it faces resistance at the 20-period MA.On the daily chart, the price has broken below the 20-day moving average (MA) with a real body candle, so we should pay close attention to price movements during today’s U.S. trading session.
Among European currencies, the euro weakened, following the Japanese yen. The EUR/AUD pair fell from 1.7846 to 1.7748, moving across the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the pair is moving sideways with support at the 200-period simple moving average (SMA), while on the daily chart, it remains below the 20-period MA and continues to trade sideways.We will be watching for any directional movement, particularly whether the euro rebounds during today’s European trading session.
Today’s schedule includes the UK Consumer Price Index, UK Retail Price Index, and UK Producer Price Index at 3:00 PM; the Eurozone Trade Balance at 6:00 PM; the US MBA Mortgage Applications Index and South African Retail Sales at 8:00 PM; and at 9:00 PM, remarks by US Federal Reserve Bank of Richmond President Barkin:Richmond Fed President remarks, at 9:15 PM: Canada Housing Starts, at 9:30 PM: US Producer Price Index, at 10:15 PM: US Industrial Production, at 11:00 PM: US Fed Governor Barkin remarks, at 11:30 PM: US Weekly Crude Oil Inventories, and at 3:00 AM: US Federal Reserve District Economic Reports.We want to carefully assess the potential for recovery in the weakening euro.
Author: Keisuke Sakurai
