Today we would take a look at the EUR/USD currency pair. The euro suffered several drops recently but is opening the week in the green.
The situation of the European single currency remains complicated. Data published recently was not as bad as investors had feared, with rising GDP and a stabilization of some indices; earlier today the eurozone retail sales came in better than forecasted. Yet, despite all of this, the euro remains below 1.12 and is having difficulties rising. Moreover, the fear of a serious trade conflict with the United States is weighing heavy on the eurozone. This week we do not expect many important reports from the eurozone, so the EUR will likely remain under pressure.
The USD, on the other hand, is strengthening again. Not that it was ever weak, but in 2019 investors have been very cautious regarding how the Federal Reserve is managing monetary policy, and a few lukewarm reports made them wary of a possible dovish turn. However, the Fed is still holding off any major policy changes, which has helped reassure the markets that a strong dollar is here to stay.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1183, with the price currently trading slightly above it. The daily support levels lie at 1.1162 and 1.1140. The daily resistances are located at 1.1205 and 1.1226. The indicators of technical analysis are confident in giving us a strong sell recommendation.
