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Euro/Dollar on the Rise: Will the Market Wait and See if It Can Hold Its Gains?

Market Report

Euro/Dollar on the Rise: Will the Market Wait and See if It Can Hold Its Gains?

Today's Highlights
  1. Japan: Employment Statistics
  2. U.S. S&P/Case-Shiller Home Price Index

In the U.S. currency market yesterday, the U.S. dollar fell against the yen. The USD/JPY pair dropped from 159.596 to 159.098. On the hourly chart, the price moved from above the 20-period moving average (MA) to below it.On the 4-hour chart, the candlesticks have pulled back to just below the 200-period simple moving average (SMA), while on the daily chart, the pair continues to hold above the 20-period moving average (MA). On the weekly chart, the uptrend along the 10-period moving average (MA) remains intact.

Among European currencies, the euro rose against the U.S. dollar. The EUR/USD pair rose from 1.1692 to 1.1755, trading above the 20-period moving average on the hourly chart. On the 4-hour chart, the price is currently pulling back from the +2σ level of the Bollinger Bands.On the daily chart, the price rebounded upon touching the 20-period moving average but was unable to sustain the rally, and resistance is building. On the weekly chart, as on the daily chart, the price is currently rebounding from the 20-period moving average.

Today’s economic indicators include Japan’s employment statistics at 8:30, the Bank of Japan’s policy rate decision and statement around noon, Japan’s machine tool orders at 15:00, a press conference by BOJ Governor Ueda at 15:30, and at 22:00, the U.S.U.S. Housing Price Index and the U.S. S&P/Case-Shiller Housing Price Index at around noon; the U.S. Richmond Fed Manufacturing Index and the U.S. Conference Board Consumer Confidence Index at 23:00; and a U.S. 7-year Treasury auction at 26:00. I’d like to wait and see if the euro/dollar pair, which has risen, can hold its gains.

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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