Today we would take a look at the EUR/USD currency pair. Lately the pair’s movement has been quite erratic, with lots of ups and downs.
The situation for the euro right now is complicated. The European single currency has been under the influence of conflicting reports. For instance, inflation remains objectively low, far from the ECB’s targets, but at the same time, it is growing. The last few important reports from the eurozone were better than expected, yet the central bank is preparing to launch another round of stimulus measures. This week we have key PMI data coming out on Wednesday and an ECB policy meeting on Thursday. These two days will decide the course of the euro for the near future.
The American dollar, interestingly, can strengthen this week if economic data from the United States is bad. Today we expect an important report on the state of the global economy by the International Monetary Fund, and later in the week the US GDP for the second quarter of 2019 will be published. If either or both of these paint a grim picture, investors might turn to the USD as a safety asset and boost its value with a lot of buying.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1217, with the price currently trading above it. The daily support levels lie at 1.1214 and 1.1211. The daily resistances are located at 1.1220 and 1.1223. The indicators of technical analysis are confident in recommending a strong sell position on this pair.
