Will the falling euro-dollar pair test lower levels? Keep an eye on price movements during European trading hours.
02.02.2026
- Germany: Retail Sales
- U.S. MPI Purchasing Managers' Index
Last weekend, the U.S. dollar rose against the euro. The EUR/USD pair fell from 1.1974 to 1.1850. Facing resistance at the 20-period moving average on the hourly chart, it dropped to just below the 200-period simple moving average.On the 4-hour chart, the price has fallen to the -2σ level of the Bollinger Bands, and on the daily chart, a large bearish engulfing candle has formed, extending from the +2σ level of the Bollinger Bands down to the centerline.
Among European currencies, the euro rebounded against the Australian dollar. The EUR/AUD pair rose from 1.6941 to 1.7084, recovering from the -2σ to the +2σ levels of the hourly Bollinger Bands.On the 4-hour chart, the pair has rebounded from below the 20-period moving average (MA) to above it, and on the daily chart, the RSI is currently rising from 23 to 35. Furthermore, during today’s Asian trading session, the pair has already surpassed last Friday’s high.
Today’s economic indicators include the release of key opinions from the Bank of Japan’s Monetary Policy Meeting at 8:50, German retail sales at 16:00,UK Nationwide House Prices at 16:00, German Manufacturing PMI at 17:55, Eurozone Manufacturing PMI at 18:00, UKmanufacturing PMI, a speech by UK BOE Deputy Governor Breeden at 20:45, the U.S. MPI Purchasing Managers’ Index at 23:45, the U.S. ISM Manufacturing Index at 24:00, and remarks by U.S. Atlanta Fed President Bostic at 26:30.We’ll be watching price movements during European trading hours to see if the falling EUR/USD pair will test lower levels.
Author: Keisuke Sakurai
