We need to sell the pair today, as the trend has turned bearish.
Today we would take a look at the EUR/USD currency pair. Despite a drop in the dollar two weeks ago, recently the American currency strengthened again and pushed the pair towards bearishness.
The outlook for the European single currency remains somewhat mixed. Inflation targets still haven’t been reached and the dovishness of the European Central Bank is scheduled to continue at least until the middle of 2019. Though there has been a fair bit of uncertainty regarding crises that can possibly affect the EU, such as the collapse of the Turkish lira or the Italian budgetary issue, overall the European economy is doing well. Analysts expect that in the last quarter of 2018 we might see a stabilization in the single currency.
On the other hand, the American dollar continues to reign supreme on the financial markets. The USD is supported by a positive economic outlook in the United States, as well as last week’s interest rate increase by the Federal Reserve. With strong fundamentals and another hike expected before the year’s end, the outlook for the USD remains bullish. Today the dollar might increase again if the employment and manufacturing reports exceed the forecasts.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1609. The daily support levels lie at 1.1599 and 1.1594, with the pair currently trading near the latter one. The daily resistances are located at 1.1614 and 1.1624. We expect the price to continue dropping. The indicators of technical analysis and the moving averages agree on a strong sell recommendation.
