All eyes are on whether the euro-dollar pair, which avoided a sharp drop and rebounded, will continue to climb higher.

All eyes are on whether the euro-dollar pair, which avoided a sharp drop and rebounded, will continue to rise.

06.01.2026

In the U.S. currency market the previous day, the U.S. dollar fell against the yen.The USD/JPY pair fell from 157.294 to 156.136. It dropped from the +2σ to the -2σ levels of the hourly Bollinger Bands. On the 4-hour chart, the candlesticks have fallen to the 200-SMA line, which is acting as support, and on the daily chart, the pair is facing resistance and has been unable to break above last month’s high.

Among European currencies, the euro saw a back-and-forth movement against the U.S. dollar. The EUR/USD pair rose from 1.1659 to 1.1729, forming a bullish candle with a lower wick. It recovered from the -2σ to +2σ levels of the hourly Bollinger Bands.On the 4-hour chart, the 200 SMA is acting as a support level, with a rebound occurring just below it, and the RSI has recovered from 28 to 51. On the daily chart, the RSI has turned upward after falling from 70 to 52.

Today’s economic indicators include Japan’s monetary base at 8:50, France’s Consumer Price Index at 16:45, France’s Non-Manufacturing PMI at 17:50, Germany’s Non-Manufacturing/manufacturing PMIs at 17:50, the Eurozone Services PMI at 18:00, the UK Services PMI at 18:30, the German Consumer Price Index at 22:00, remarks by U.S. Richmond Fed President Barkin, and the U.S. PMI at 23:45.We will be watching price movements during European trading hours to see if the euro/dollar pair, which avoided a sharp decline and rebounded, will continue to extend its gains.