Today we would take a look at the EUR/USD currency pair. The euro used last week to recuperate some of its previous losses and seems to have avoided falling to a new low for now.
The euro is currently pretty neutral. Last week’s ECB meeting did not bring any surprises and did not weaken the euro any further. Some of the recent fundamentals from the eurozone have not been half bad, and the postponement of Brexit certainly helped the European single currency find some support. This week we expect new important reports from Germany and the eurozone as a whole, which will determine whether the euro will be able to appreciate against the dollar more or weaken once more.
Similarly, the course of the dollar is difficult to predict right now. The Federal Reserve earlier scared investors by adopting a less hawkish approach to monetary policy, though this does not necessarily mean a dovish turn. There is still important data from the first quarter of 2019 to roll out, which will determine the future actions of the Federal Reserve. In any case, right now the dollar is a bit more passive, waiting for outside developments such as Brexit and the trade war to influence it.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1302, with the price currently trading above it. The daily support levels lie at 1.1296 and 1.1289. The daily resistances are located at 1.1309 and 1.1315, and the pair is currently trading above the former one of the two. The indicators of technical analysis are confident in giving us a strong buy recommendation.
