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 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 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. Additionally, 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, 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’d like to wait and see whether the euro, which has faced resistance against the US dollar, will recover.