Market Participants May Be Watching for Signs of a Rebound in the Weakening Euro
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-period moving average—which had been acting as support—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, with price action straddling the 20-period moving average 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 continues to trade sideways below the 20-period moving average. We will be watching for any directional cues, 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 15:00; the Eurozone Trade Balance at 18:00; the US MBA Mortgage Applications Index and South African Retail Sales at 20:00; and at 21:00, remarks by US Federal Reserve Bank of Richmond President Barkin:remarks by Richmond Fed President, at 9:15 PM: Canadian housing starts; at 9:30 PM: U.S. Producer Price Index; at 10:15 PM: U.S. industrial production; at 11:00 PM: remarks by Fed Governor Barkin; at 11:30 PM: U.S. weekly crude oil inventories;and at 27:00, U.S. Federal Reserve District Economic Reports are scheduled. We want to carefully assess the potential for recovery in the euro, which has been trading lower.
Author: Keisuke Sakurai
