Today we would take a look at the EUR/USD currency pair. After the euro managed to recover somewhat in price, last week it weakened against the USD again.
This week the euro is under the influence of political events. The leaders of the member countries of the EU will be tasked with electing a new President of the European Central Bank. Although no big surprises are expected there, it still matters that there will be a change of power. With the most recent economic developments in the world and a mixed outcome from the eurozone, many investors anticipate a dovish cautiousness from the ECB, which can further weaken the euro. Moreover, the threats from a hard Brexit and tariffs from the United States still persist.
This week the Federal Reserve will be deciding the fate of interest rates in the United States. While investors are not as daring as to expect an outright rate decrease this week, it is possible that we receive serious hints regarding the Fed’s current sentiment. Aside from this, the USD has recently managed to strengthen due to some reassuring fundamental reports such as high retail sales.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1212, with the price currently trading above it. The daily support levels lie at 1.1207 and 1.1198. The daily resistances are located at 1.1220 and 1.1226. The indicators of technical analysis are mixed right now, but lean towards recommending a sell.
