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Should We Watch for the U.S. Dollar—Now at Its Weakest—to Test New Lows?

Market Report

Should We Watch for the U.S. Dollar—Now at Its Weakest—to Test New Lows?

Today's Highlights
  1. U.S. Existing-Home Sales
  2. Germany's ZEW Economic Sentiment Index

In the U.S. currency market the previous day, the U.S. dollar was the weakest currency all day, from the start of the week during Asian trading hours through the late U.S. trading session.The EUR/USD pair rose from 1.1414 to 1.1524, rebounding from the -2σ to +2σ levels of the hourly Bollinger Bands. The 4-hour chart shows a similar price movement to the hourly chart, and on the daily chart, the pair is currently rebounding after breaking below the 200 EMA support line.

Among European currencies, the Swiss franc saw a back-and-forth movement against the yen. The CHF/JPY pair traded between 201.114 and 202.205. The hourly RSI rebounded after touching 30.On the 4-hour chart, the 200 SMA is acting as a support level, while on the daily chart, the pair is continuing its uptrend along the 20 MA and is in the process of setting a new all-time high. We’ll be watching to see if the Swiss franc rebounds during today’s European trading session.

Today, the RBA policy rate and statement will be announced at 12:30 p.m. (Australia); the Japanese Tertiary Industry Activity Index and a press conference by RBA Governor Block will be held at 1:30 p.m. (Australia); Swiss producer and import prices will be released at 4:30 p.m. (Switzerland); Canadian existing home sales will be reported at 6:00 p.m. (Canada);at 7:00 p.m., Germany’s ZEW Economic Sentiment Index and the Eurozone’s ZEW Economic Sentiment Index; at 11:00 p.m., the U.S. Leading Economic Index and U.S. Existing Home Sales; at 12:15 a.m., remarks by Germany’s Bundesbank President Nagel; at 2:00 a.m., the U.S. 20-year Treasury auction; and at 6:45 a.m. the following day, New Zealand’s Current Account Balance.Remarks by German Bundesbank President Nagel, U.S. 20-Year Treasury Auction at 2:00 a.m., and New Zealand Current Account Balance at 6:45 a.m. the following day. Keep an eye on whether the U.S. dollar, which has hit a new low, will continue to fall.

桜井 慶介

Author: Keisuke Sakurai

He has over 10 years of experience in FX trading. In the financial sector, he has been involved in investment management focused primarily on foreign exchange markets and has experience as an asset management advisor. Drawing on his extensive experience, he specializes in technical and fundamental analysis.

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