Today we would take a look at the EUR/USD currency pair. The pair went through a brief recovery period last week, but now it has turned bearish once again.
The euro has established a narrow range that it keeps trading within: there are strong resistances at 1.1355 and 1.1325, with a very strong support at 1.12 which has not been steadily breached. Right now it seems that the euro has lost its momentum. Last week produced several fundamental reports which failed to awe investors. Germany's data caused particular agitation, as Europe's strongest economy is underperforming and growth for 2019 has now been revised all the way down to just 0.5%. Moreover, Donald Trump has hinted at imposing tariffs on the EU, similarly to what he did with China last year. Today the markets are closed for Easter, and tomorrow's reports will only have a moderate degree of importance, so right now it seems that the euro is bound to incur further losses.
The economic situation is better (though not by much) in the United States, where recent fundamentals have disappointed investors, prompting the Federal Reserve to keep a very watchful eye on all new data and prepare to soften their monetary policy, if needed. It is widely expected that this week’s report on the US GDP in the first quarter of 2019 will be lower than before. However, despite all of this weighing down the dollar, right now it has been able to regain some of its positions based on the fact that there are even more risks outside of the United States, i.e. the USD is serving as a safety asset in comparison.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1245, with the price currently trading very close to it. The daily support levels lie at 1.1240 and 1.1235. The daily resistances are located at 1.1250 and 1.1255. The indicators of technical analysis are confident in giving us a strong sell recommendation.
