Concerns over further downside potential for the euro against the U.S. dollar

Concerns over further downside potential for the euro against the U.S. dollar

10.10.2025

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 109.745 to 109.073. On the hourly chart, it fell from the +3σ to the -3σ Bollinger Band. On the 4-hour chart, it has already broken below the 10-period moving average (MA) that had been providing support and is now testing the 20-period MA. On the daily chart, the RSI, which had risen to just under 70, has fallen to 63.On the weekly chart, a reversal is observed following a touch of the +3σ Bollinger Band.

Among European currencies, the euro fell against the U.S. dollar. The EUR/USD pair has fallen for four consecutive days. The hourly RSI has dropped from 57 to 22. On the 4-hour chart, the downtrend along the 20-day moving average (MA) continues, and on the daily chart, the price has fallen below the level of last month’s low. Furthermore, on the weekly chart, the price is positioned just below the 20-day MA, bringing the uptrend that has been in place since early this year to the brink of ending.

Today’s economic indicators include remarks by RBA Governor Block at 7:00 a.m., Japan’s domestic corporate goods price index at 8:50 a.m., and the U.S. Daily:San Francisco Fed President’s remarks at 8:50 AM, Canadian employment data at 9:30 PM, U.S. Chicago Fed President Goolsbee’s remarks at 10:45 PM, U.S. University of Michigan Consumer Sentiment Index at 11:00 PM, and St. Louis Fed President Musalem’s remarks at 2:00 AM.Note that today’s scheduled fiscal balance report has been postponed due to the U.S. government shutdown. We should remain cautious regarding the downside potential for the euro, which has weakened against the U.S. dollar.

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