Today we would take a look at the EUR/USD currency pair. This instrument has experienced quite a few shocks over the past month, after a double top pattern in February, so let’s see where the price is headed.
The American dollar, as we’ve noted in our other articles within the last few days, has been giving us a lot of mixed signals lately. On the one hand, there was an opportunity to strengthen on account of the interest rate hike by the Federal Reserve last week, but this ended up bringing no positives for the USD. Instead, the American currency succumbed to political pressures after a series of resignations within Trump’s cabinet, as well as the international strain of Trump’s proposed tariffs, which might lead to a trade war. Because of this, the dollar isn’t very strong right now.
The euro also isn’t very impressive lately, mostly due to a lack of events and releases which might offer more support for it. Because of the upcoming Easter holidays European markets are expected to be rather passive, both this week and the one after. However, the euro could still react to external factors in the meantime. In particular, we’re still awaiting a final decision whether the EU will be permanently exempt from steel and aluminum tariffs with the United States or not, and this news could have a major impact on the single currency.
In terms of the daily chart, today we have a pivot point for the pair located at 1.2345. The pair is currently trading below it, so we need to pay attention to the support levels at 1.2268 and 1.2223. If the EUR/USD manages to overcome the pivot, then look towards the resistances at 1.2390 and 1.2467. In the daily term the indicators of technical analysis show a somewhat mixed signal, but most lean towards a sell recommendation.
