Will the market continue to lack direction following the recent decline? Should we wait and see how the EUR/AUD pair develops?

Will the market continue to lack direction following the recent decline? Should we wait and see how the EUR/AUD pair develops?

27.08.2025

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 106.739 to 106.192. It declined as it encountered resistance at the 200-period EMA on the hourly chart.On the 4-hour chart, the 75-period moving average is acting as a resistance zone, and price action is fluctuating as the market searches for direction while crossing the 20-period moving average. On the daily chart, prices have fallen to the -2σ Bollinger Band level near the RSI 40 mark. Note that during today’s Asian trading session, the Canadian dollar has shown a slight rebound, so caution is advised regarding the market’s direction.

In European currency trading, the euro traded in a narrow range against the Australian dollar.The EUR/AUD pair traded between 1.7912 and 1.7981. Price action was seen fluctuating around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the decline continues as the 10-period MA caps the upside, with prices falling just below the 200-period simple moving average (SMA). Meanwhile, on the daily chart, the price has formed a bullish candle with an upper shadow following a brief pause after three consecutive days of decline.

Today’s economic indicators include the Australian Westpac Leading Index at 9:30, the Australian Consumer Price Index at 10:30, and at 13:01, remarks by U.S. Federal Reserve Bank of Richmond President Barkin:Remarks by Richmond Fed President, 3:00 PM: Germany’s GfK Consumer Confidence Survey, 7:00 PM: UK’s CBI Retail Trade Survey, 8:00 PM: US MBA Mortgage Applications Index, 11:30 PM: US Weekly Crude Oil Inventories, and 2:00 AM: US 5-Year Treasury Auction.I want to closely monitor the direction of the EUR/AUD pair to see if the market will continue to lack direction following the recent decline.

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