Today we would take a look at the EUR/USD currency pair. After spending the weekend in a flat, today we see the euro has begun to weaken against the dollar once more.
The current situation for the euro is full of uncertainty. On the one hand, recent inflation data from the eurozone was better than expected, which was reassuring and helped the European single currency appreciate against the dollar a bit. However, tensions remain within the EU, especially considering the deteriorating finances of Italy and the ongoing chaos of Brexit. Plus, with recent assurances from the ECB that they are ready for more QE, it seems the euro lacks incentives for growth.
The American dollar is shaking off its recent weakness today. Previously the USD relaxed against other major currencies due to the plans of the Federal Reserve to switch from a hawkish to dovish approach to monetary policy. This still remains the case, but with Donald Trump and Xi Jinping making another promise to keep the trade negotiations going the USD was able to strengthen and today it is recovering its lost positions.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1364, with the price currently trading well below it. The daily support levels lie at 1.1345 and 1.1333, and both have been overcome right now. The daily resistances are located at 1.1371 and 1.1383. The indicators of technical analysis are somewhat mixed but lean towards a buy recommendation in the daily term.
