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 yesterday, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 113.834 to 113.357.The pair fell as the 20-period moving average on the hourly chart capped its upside. 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 moving average—which had previously provided 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 fell from 1.1742 to 1.1684. On the hourly chart, the price has 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 MA to near the 200-period SMA, and on the daily chart, resistance is building below the 20-period MA. Furthermore, 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 and the Australian Consumer Price Index at 9:30 a.m., German retail sales at 4:00 p.m., German employment statistics at 5:55 p.m., the UK Construction PMI at 6:30 p.m., and the EurozoneCPI, at 9:00 PM: US MBA Mortgage Applications Index, at 10:15 PM: US ADP Employment Report, at 12:00 AM: US Factory Orders, US Durable Goods Orders, US ISM Non-Manufacturing PMI, US JOLTS Job Openings, and at 12:30 AM: US Ivey PMI, followed by US Weekly Crude Oil Inventories.I want to wait and see if the euro, which has faced resistance against the US dollar, will recover.

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