We should sell the pair as it is in a bearish wave today.
Today we would take a look at the EUR/USD currency pair. The pair declined again in the second half of last week, but managed to stabilize during the weekend.
The European single currency had a somewhat lackluster performance last week, though it still held up a bit better than at the end of September and early October. The currency continues to be neutral due to a lack of important reports and events that could push it either up or down. The euro has been susceptible to some pressure due to the strained relations of the EU with Italy over budgetary disagreements, as well as the ongoing issue of Brexit talks, yet fundamentals remain in line with most expectations. This week there would be a policy meeting of the ECB, which may offer a slight boost to the euro, though we don’t expect any major news there: the central bank has been transparently clear about their intentions to end stimulus in December and keep interest rates steady for at least the first half of 2019. On Tuesday we expect the consumer confidence report and Wednesday would bring a set of PMIs from across the eurozone that may also affect pairs with the euro.
The American dollar is also moving in the expected manner. Fundamentals remain strong, the Federal Reserve is confident in another hike in December and likely at least three more in 2019, despite Trump’s negative opinion of their hawkish approach. The USD is also enjoying investor interest as a safe asset right now, since its foreseeable future is easy to predict. We expect further bullishness in the USD.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1513 and the pair is currently trading slightly below it. The daily support levels lie at 1.1508 and 1.1504. The daily resistances are located at 1.1517 and 1.1522. We expect the price to continue falling today. The indicators of technical analysis are confident in giving us a strong sell recommendation.
