Today we would take a look at the EUR/USD currency pair. Over the past two months the pair has experienced a lot of ups and downs and right now it’s declining again.
First of all, the euro right now is pretty steady. There isn’t much in terms of fundamental reports to influence it. Furthermore, the European markets have been quiet due to the Easter holidays. Right now pairs including the euro are influenced by the other currency in the pair more significantly.
The US dollar has been quite shaky lately. This is due to President Donald Trump’s proposal of tariffs for China, which in turn has led to retaliatory tariffs from China on US goods. It is widely expected that Trump’s tariff plan will actually raise costs for American businesses instead of lower them, and that the tariff war would have negative effects on the global economy. This is why we don’t expect the dollar to be particularly strong.
In terms of the daily chart, we have a pivot point located at 1.2283 today. Due to the slow European markets we might see the euro drop down to the nearby support levels at 1.2251 and 1.2224. In case the euro manages to stabilize, watch out for the resistances at 1.2310 and 1.2342. Currently the indicators of technical analysis point to a good opportunity for sell positions.
