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

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

06.01.2026

In yesterday’s U.S. currency trading, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 157.294 to 156.136. It fell from the +2σ to the -2σ levels on 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 upside has become heavy as the pair failed to break above last month’s high.

Among European currencies, the euro traded in a narrow range 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 the +2σ levels of the hourly Bollinger Bands. On the 4-hour chart, the 200-period SMA acted as a support level, with a rebound occurring just below it, and the RSI 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 PMI, 6:00 PM for the Eurozone Services PMI, 6:30 PM for the UK Services PMI, 10:00 PM for the German CPI and remarks by Barkin, President of the Richmond Fed, and 11:45 PM for the US PMI. With the EUR/USD pair having avoided a sharp decline and rebounded, we will be watching price movements during European trading hours to see if it can extend its gains.

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