Today we would take a look at the EUR/USD currency pair. Over the past week the exchange rate of this pair has declined to 3-week low.
The European single currency is having trouble stabilizing. Recent economic reports from Germany were very disappointing for investors, triggering more weakness for the EUR. Despite an improvement in inflation, the European Central Bank is still widely expected to loosen their monetary policy further. Plus, with Brexit still on the horizon, and the possibility of a trade dispute with the US, the eurozone is not at its economic best right now.
The American dollar, on the other hand, continues to strengthen. Today the USD is pushing upwards due to better than expected nonfarm payrolls reports. This prompted investors to lower their expectations for an interest rate decrease by the Federal Reserve this month. It is still expected to happen, but now the forecasts have lowered it from 50 basis points to only 25.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1225, with the price currently trading well below it. The daily support levels lie at 1.1221 and 1.1213, the first of which has been overcome already. The daily resistances are located at 1.1232 and 1.1237. The indicators of technical analysis recommend a strong sell in the daily term.
