Will the market continue to lack direction following the recent decline? Should we take a wait-and-see approach to the EUR/AUD pair?
27.08.2025
- German GfK Consumer Confidence Survey
- U.S. Weekly Crude Oil Inventories
In the U.S. currency market yesterday, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 106.739 to 106.192, declining 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, the price has 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.
Among European currencies, the euro saw a seesawing trend 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, a bullish candle with an upper shadow has formed 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, 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.
Author: Keisuke Sakurai
