Today we would take a detailed look at the EUR/USD currency pair. This instrument is giving traders some trouble this week, as there aren’t many events or reports that are likely to influence the pair greatly. Things have been quiet for the EUR which began a gentle but continuous drop down last week, after the ECB announced that its stimulus program will continue well into 2018. Meanwhile, the USD has found support against most currencies, but this could be shaken right now as the Senate is debating whether to pass Trump’s proposed tax reform. Right now this contributes to a volatility of about 15% in the pair.
In terms of the daily chart, our key pivot point for today is 1.1605. If the pair managed to overcome this level, then we can look forward to the price touching and surpassing our daily resistances at 1.1630, 1.1649, and 1.1674. However, that is not very likely. The more probably scenario is to see the pair remain below the pivot point and retreat back to its support levels which today are located at 1.1586, 1.1561, and 1.1542.
As of the moment of this article’s publication the EUR/USD is trading around 1.1576, which is below the pivot point and below the first support level, confirming our bearish outlook for the pair today. The technical indicators are unanimous in their suggestion for a strong sell.
