Will the euro, which has faced resistance against the U.S. dollar, recover? Or should we wait and see which direction it takes?

Will the euro, which has faced resistance against the U.S. dollar, recover? Or should we wait and see which direction it takes?

07.01.2026

In the U.S. currency market the previous day, the Canadian dollar fell against the yen. The CAD/JPY pair fell from 113.834 to 113.357.The pair fell as its upside was capped by the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the RSI has dropped to 30 near the -2σ level of the Bollinger Bands, and on the daily chart, the price has broken below the 20-period MA—which had been acting as support—with a real body candle. Attention is now focused on whether the uptrend that began last October will continue.

Among European currencies, the euro fell against the U.S. dollar. The EUR/USD pair dropped from 1.1742 to 1.1684. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the price has fallen again from the 20-period moving average (MA) to near the 200-period simple moving average (SMA), and on the daily chart, resistance is building below the 20-period MA. Meanwhile, on the weekly chart, the price is being capped by the +2σ Bollinger Band, suggesting a potential triple top formation.

Today's economic indicators include Australian housing construction permits at 9:30,Australian Consumer Price Index at 9:30, German Retail Sales at 16:00, German Employment Statistics at 17:55, UK Construction PMI at 18:30, Eurozone Consumer Price Index at 19:00, U.S. MBA Mortgage Applications Index at 21:00,at 22:15, the U.S. ADP Employment Report; at 24:00, U.S. Manufacturing New Orders, U.S. Durable Goods Orders, the U.S. ISM Non-Manufacturing Index, U.S. JOLTS Job Openings, and the Canadian Ivey PMI; and at 24:30, U.S. Weekly Crude Oil Inventories.I’d like to wait and see whether the euro, which has faced resistance against the U.S. dollar, will recover.