Today we shall take a look at the EUR/USD currency pair. The pair still remains close to 2-year lows, below the key psychological level of 1.10.
The European single currency’s woes continue. Economic growth has been depressing, with reports disappointing investors one after the other. There is some hope that the QE the European Central Bank is going to provide from November is going to help things. However, there is over a month until stimulus package starts and the euro may weaken more until then. Today’s German CPI came in lower than expected at 1.2% versus the forecasted 1.3% (which was already a lower revision of the previous report), showing that Europe’s largest economy is shrinking.
On the other hand, the American dollar remains the strongest currency in the world. The currency of the United States seems immune to all kinds of shock. Even the current impeachment proceedings against Donald Trump are not having a negative effect on the USD. It could strengthen further if October’s round of trade negotiations between the US and China fail and disappoint investors.
In terms of the daily chart, today we have a pivot point for the pair located at 1.0943, with the price currently trading below it. The daily support levels lie at 1.0939 and 1.0935. The daily resistances are located at 1.0947 and 1.0951. The indicators of technical analysis are confident in recommending us a strong sell position.
