Today we expect the pair to be bullish.

Today we would take a detailed look at the EUR/USD currency pair. This popular trading instrument has been seeing quite a lot of ups and downs lately, mostly due to fundamental factors. It appears that within the current channel for the pair, right now the EUR/USD is on the rise.

Since March the euro has been going up and down within the same range from around 1.2245 up to 1.2443. Even with all the news regarding the United States, such as the March increase of interest rates by the Federal Reserve, the tariff war with China, and most recently the strikes in Syria, the euro has remained mostly unaffected, trading in that same range. Even some lukewarm fundamentals have been unable to push the euro down. Right now the key threat for the euro is how the United States treats Russia with regards to its support for al-Assad’s regime in Syria. The US has threatened to impose sanctions on Russia, and if it does, Russia might take it out on the European Union, where the US has allies.

Meanwhile, the dollar’s journey continues to be interesting, propelled by opposing factors. On the one hand, economic data from the United States continues to be positive, with rising wages and inflation, which means we’re likely to have another rate hike soon. However, politics is once again casting a shadow on the good statistics. The past weeks have been marked by changes in Trump’s cabinet, more scandals around the President, a deepening of the Russia investigation (regarding Trump’s election), the tariff war, and now Syria. So despite all statistics in theory pushing for a stronger dollar, US politics is slowing the currency down.

In terms of the daily chart, today we have a pivot point located at 1.2368. The pair is currently trading above that level and we expect it to continue that way, at least for today, so watch out for the nearby resistance levels at 1.2412 and 1.2439. If the pair drops below the pivot, pay attention to the supports at 1.2341 and 1.2297. The indicators of technical analysis unanimously agree on a strong buy signal.