Should we keep an eye on the euro's upside potential now that it has become the strongest currency in U.S. trading hours?

Should we keep an eye on the euro’s upside potential now that it has become the strongest currency in U.S. trading hours?

18.08.2025

In the U.S. currency market last weekend, the U.S. dollar hit its lowest point from late Asian trading hours through late U.S. trading hours. The EUR/USD pair traded between 1.1642 and 1.1714. An uptrend has emerged along the 10-period moving average (MA) on the hourly chart. On the 4-hour chart, the 200-period exponential moving average (EMA) is acting as a support level, leading to a rebound, while on the daily chart, prices are rising with support from the 20-period MA.

Among European currencies, the euro was the strongest from European trading hours through the late U.S. session.The EUR/JPY pair rose from 171.501 to 172.371. It moved from the -2σ to the +2σ levels of the hourly Bollinger Bands. On the 4-hour chart, the 200 SMA is acting as a support level, and the pair is rebounding. On the weekly chart, the price has risen after touching the 10-day MA, and the band walk at the +2σ level of the Bollinger Bands continues.

Today’s economic indicators include the UK Rightmove House Price Index at 8:01 a.m., Japan’s Tertiary Industry Activity Index at 1:30 p.m., the Eurozone Trade Balance at 6:00 p.m., Canada’s Housing Starts at 9:15 p.m., Canada’s International Securities Turnover at 9:30 p.m., and the U.S. NAHB Housing Market Index at 11:00 p.m. We will be closely monitoring the euro’s upside potential, which has been the strongest in U.S. trading hours.