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

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

27.08.2025

In U.S. currency trading the previous day, 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 MA is acting as a resistance zone, and price action is fluctuating as the pair seeks direction while moving across the 20-period MA. On the daily chart, the price has fallen to the -2σ Bollinger Band level near an RSI of 40. Note that during today’s Asian trading session, the Canadian dollar has shown a slight rebound, so caution is advised regarding the direction of the market.

Among European currencies, the euro saw a back-and-forth movement against the Australian dollar. The EUR/AUD pair traded between 1.7912 and 1.7981. Price action was observed straddling the 20-period moving average (MA) on the hourly chart.On the 4-hour chart, the downtrend—with the 10-period MA capping the upside—continues, and the price has fallen to just below the 200-period 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 declines.

Today’s economic indicators include the Australian Westpac Leading Index at 9:30, the Australian Consumer Price Index at 10:30, remarks by U.S. Richmond Fed President Barkin at 13:01, the German GfK Consumer Confidence Survey at 15:00, and the UKCBI Retail Trade Survey at 15:00, the U.S. MBA Mortgage Applications Index at 20:00, U.S. weekly crude oil inventories at 23:30, and a U.S. 5-year Treasury auction at 26:00. I’d like to closely monitor the direction of the EUR/AUD pair to see if the market will continue to lack direction following the recent decline.