EUR/USD Technical Analysis
Today we would take a look at the EUR/USD currency pair. After the price spent last week recovering, it is now once more decreasing.
There is not much that is new in Europe. The most recent reports on economic growth and inflation rates were disappointing, but overall in line with what the European Central Bank has warned against. The ECB was alarmed by the global economic slowdown in 2018, especially exacerbated by Trump’s tariff plan. The eurozone is also affected by this and as a result, the EU economy is no longer growing at the rates previously expected. We believe the ECB will maintain a dovish stance and the euro will not have any reason to strengthen in the foreseeable future.
The American dollar is in a bit of a confusing place. Ever since the Federal Reserve voiced their concerns about the economic slowdown and indicated they might not increase interest rates anymore, unless it is absolutely necessary, the factors influencing the dollar have shifted. Normally, any sign of dovishness by the Fed would weaken the dollar, but instead it strengthened due to the overall unease on the global financial markets. Right now the USD is benefitting from market uncertainty.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1456, with the price currently very near, slightly below it. The daily support levels lie at 1.1446 and 1.1437. The daily resistances are located at 1.1466 and 1.1475. The indicators of technical analysis are giving us a strong buy recommendation.