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Attention Turns to Upside Potential for the Euro/Dollar Pair, Which Continued to Rise

Market Report

Attention Turns to Upside Potential for the Euro/Dollar Pair, Which Continued to Rise

Today's Highlights
  1. UK BRC Same-Store Sales
  2. Remarks by Swiss National Bank (SNB) President Schlegel

In the U.S. currency market yesterday, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 148.579 to 147.332. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the 200-period simple moving average (SMA) failed to act as support, and the price broke below it, leading to a decline. On the daily chart, the 200-period SMA acted as resistance, causing the candlestick to reverse. Since downward price movement is also being observed during today’s Asian trading session, we should pay close attention to developments during U.S. trading hours.

European currencies rose as the euro strengthened against the U.S. dollar following yesterday’s release of Germany’s July industrial production data, which showed a year-over-year improvement from the previous month’s 3.6% decline to a 1.5% increase.The EUR/USD pair rose from 1.1703 to 1.1766, moving in line with the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the 10-period MA is acting as a support line and trending upward, while on the daily chart, the price has expanded from the -2σ to the +3σ levels of the Bollinger Bands and has been rising for two consecutive days.

Today’s schedule includes UK BRC same-store sales at 8:01, Japan’s money supply at 8:50, Australia’s Westpac Consumer Confidence Index at 9:30, and Australia’sNAB Business Conditions Index, at 15:00 Japan’s machine tool orders, at 15:45 France’s industrial production and manufacturing production index, at 18:30 South Africa’s Q2 real GDP, at 19:00 the U.S. Small Business Optimism Index, at 20:30 Germany’sremarks by German Bundesbank President Nagel, at 20:50 remarks by Swiss National Bank (SNB) President Schlegel, at 24:15 remarks by BOE Deputy Governor Breeden, and at 26:00 a U.S. 3-year Treasury auction.We will closely monitor the upside potential of the euro/dollar pair, which has continued to rise.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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