Will the falling euro-dollar pair test lower levels? Keep an eye on price movements during European trading hours.

Will the falling euro-dollar pair test lower levels? Keep an eye on price movements during European trading hours.

02.02.2026

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 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 has 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 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 8:45 PM, the US MPI Purchasing Managers' Index at 11:45 PM, the US ISM Manufacturing Index at midnight, and a speech by US Atlanta Fed President Bostic at 2:30 AM. We will be watching price movements during European trading hours to see if the falling EUR/USD pair will extend its decline.