Today we shall take a look at the EUR/USD currency pair. This month the euro has had a tough going, gradually pushing the rate up, though it’s still keeping close to the 1.10 level.
The course of the European single currency right now remains uncertain. Last week it experienced losses after the ECB unveiled a far-reaching stimulus program and a cut on deposit rates. However, the euro seems to have recovered from that and was able to return to two-week highs. Nevertheless, the threat of a hard Brexit is looming closer and the US-China trade war is adding pressure to the international markets, so the euro won’t have an easy time recovering. Tomorrow we expect important economic reports from the eurozone and Germany, so those may additional rattle the pair.
The US dollar remains strong. However, investors expect that on Wednesday the Federal Reserve will announce another interest rate decrease. If the Fed slashes rates by 25 basis points (which would be the second cut in 2019), the dollar will likely weaken. Moreover, the central bank will also release its reports on the state of the US economy together with their rate decision. This data will tell us more about their future plans and whether the USD will strengthen more.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1082, with the price currently trading below it. The daily support levels lie at 1.1071 and 1.1059. The daily resistances are located at 1.1094 and 1.1105. The indicators of technical analysis are mixed at the moment but lean towards recommending a buy position.
