Will the falling euro-dollar pair extend its decline? Keep an eye on price movements during European trading hours.

Will the falling euro-dollar pair extend its decline? Keep an eye on price movements during European trading hours.

02.02.2026

In the U.S. currency markets last weekend, the U.S. dollar rose against the euro. The EUR/USD pair fell from 1.1974 to 1.1850. It dropped to just below the 200-day SMA, finding resistance at the 20-day SMA on the hourly chart. 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. It recovered from the -2σ to the +2σ levels on the hourly Bollinger Bands. On the 4-hour chart, the pair has rebounded from below the 20-period moving average 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 key economic indicators include the release of key opinions from the Bank of Japan’s Monetary Policy Meeting at 8:50 a.m., German retail sales and UK Nationwide house prices at 4:00 p.m., the German Manufacturing PMI at 5:55 p.m., the Eurozone Manufacturing PMI at 6:00 p.m., and the UKmanufacturing PMI, a speech by UK BOE Deputy Governor Breeden at 20:45, the US MPI Purchasing Managers' Index at 23:45, the US ISM Manufacturing Index at 24:00, and a speech by US Atlanta Fed President Bostic at 26:30. We should keep a close eye on price movements during European trading hours to see if the falling EUR/USD pair will extend its decline.

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