Today we would take a look at the EUR/USD currency pair. The price has been dropping all through February and is now trying to stabilize around the 1.13-1.14 level.
The European single currency continues to struggle. Recent inflation reports showed some of the lowest numbers for the past two years, which indicates that the global economic problems have been particularly harsh on the eurozone. Additionally, Europe has been troubled by political problems such as Brexit and the protests in France, as well as frequent elections in several member states, so the EUR does not seem very attractive to investors. It was able to make small gains as the risk appetite increased last week, but overall it does not have incentives for growth. We expect the German ZEW surveys tomorrow and the eurozone consumer confidence index on Wednesday.
The American dollar continues strong. Recent data has not been as amazing as initially hoped for, but the USD is still boosted by economic stability that is rare in the current business climate. The talks between the US and China continue, and the danger of another government shutdown was avoided, which were all stabilizing factors for the dollar.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1293, with the price currently trading above it. The daily support levels lie at 1.1284 and 1.1274. The daily resistances are located at 1.1302 and 1.1312. The indicators of technical analysis and the moving averages agree on a sell recommendation in the daily term.
