Today we would return to the EUR/USD currency pair. The pair grew up until last weekend, then declined again.
The European single currency remains neutral. It was previously pressured by the crisis of the Turkish lira, but as there has been no significant effect on European banks, which is what analysts feared, the single currency stabilized. Still, we need to follow the issue closely, since European banks are owed quite a lot by Turkey and it the lira completely defaults they may need help from the ECB. If this happens, the European Central Bank might be forced to reconsider their current procedure of unwinding QE, which would weaken the euro.
Meanwhile, the American dollar continues to strengthen. The current price increase is due to the trade relations between China and the United States worsening once again. This kind of stress on the international financial markets raises investor interest in the dollar as a safe haven instrument, propping its value up.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1598. The daily support levels lie at 1.1592 and 1.1587. The daily resistances are located at 1.1603 and 1.1609. The indicators of technical analysis are recommending a strong buy position.
