Today we would take a look at the EUR/USD currency pair. It has been wildly going up and down over the past two weeks, and these upsets seem to continue even today.
There are currently no major incentives for the euro to grow. The European Central Bank made it clear that interest rates will not be increased at least until the second half of 2019, even when quantitative easing ends. This is why right now all investors can count on is positive inflation data from the eurozone, but we do not have that kind of release this week. We expect pairs with the euro to be driven by the other currency in each pair.
On the other hand, the USD continues to be supported by good economic data from the United States. This has so far managed to shelter the dollar from any negative fallout from Donald Trump’s controversial policies. Today we have some high-importance releases of economic reports from the United States such as the manufacturing and employment statistics for June. At the time of their release the pair might experience higher volatility.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1678, though the pair is currently trading below it. We expect the EUR/USD to drop in value today, so pay attention to the nearby support levels at 1.1649 and 1.1635. Though the pair is not likely to reach that far up, be aware that the daily resistances are at 1.1693 and 1.1707. The indicators of technical analysis agree on a sell recommendation, as do the moving averages.
