Today we would take a look at the EUR/USD currency pair. As of last week the rate has been steadily declining and has dropped below 1.1150.
The current outlook for the euro is predominantly bearish. Last week the European Central Bank held an important policy meeting where they revealed they are ready to cut interest rates to below zero (as right now they are at 0.00%) and restart the stimulus measures they ended in 2018. This is supposed to offer the Europeab economy a boost, since data has been worse than expected recently and inflation remains low. Considering the ECB’s policy was already pretty loose, this extreme dovishness is weakening the euro quite a bit.
The American dollar has also had its ups and downs lately. This week investors anticipate the first interest rate decrease in the United States since the financial crisis of 2008. That will cause some weakness in the dollar. However, the euro remains significantly weaker, since data from the eurozone is worse than in the US. This means the USD will continue to dominate this pair.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1128, with the price currently trading below it. The daily support levels lie at 1.1123 and 1.1117. The daily resistances are located at 1.1134 and 1.1139. The indicators of technical analysis are confident in recommending a strong sell position on this pair.
