Today we shall take a look at the EUR/USD currency pair. After the euro managed to break upward of 1.10, the pair has stayed more or less flat near 1.1165.
The euro has been able to remain above 1.11 against the dollar for a few days now, which is impressive, considering the European single currency lacks any serious incentives to strengthen. For now, things in the eurozone remain calm. A hard Brexit was successfully avoided last week and the ECB is transitioning smoothly to be under Christine Lagarde’s leadership. Today we expect the Markit manufacturing PMI, but those reports will only have a low impact on the euro, so we don’t think the currency will be volatile for the time being.
The main factor influencing the American dollar right now is the progress in the trade negotiations between the United States and China. The USD weakened last week when Chile declined to host Donald Trump and Xi Jinping’s meeting scheduled for later this month. However, now the two leaders have stated they still plan to arrange a meeting. Reportedly, President Trump plans to host his Chinese counterpart in Iowa, US. The goal of the two presidents’ meeting is to officially sign the phase-one agreement the negotiators have been working on for over a month now. In the next few weeks, the USD will likely be in the sway of the market’s trade talk.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1167, with the price currently trading below it. The daily support levels lie at 1.1162 and 1.1159. The daily resistances are located at 1.1170 and 1.1175. The indicators of technical analysis are confident in giving us a strong buy recommendation.
