Today we would take a look at the EUR/USD currency pair. The pair has experienced quite a few ups and downs lately and currently appears to be on the rise.
The European single currency is neutral at the moment. This week there will be a meeting of the European Central Bank, but investors are not expecting much from it. ECB President Mario Draghi confirmed multiple times that the current policy of the ECB will remain in place until at least the middle of 2019, so there is no hope for hawkishness. On Tuesday we expect the PMI of Germany, as well as the eurozone as a whole - if the data turns out better than expected, we could see an increase in rates that contain the euro.
Meanwhile, the American dollar remains strong in terms of fundamental, but shows some weakness when President Trump makes it to the news. Last week he shook the dollar by claiming that the Federal Reserve’s hawkishness is not good for the economy. This week he is meeting with Juncker to discuss trade with Europe, where he previously threatened additional sanctions. The dollar has a potential to grow on Friday when the second quarter GDP will be released, with a forecasted growth of 4.2%.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1737, with the pair currently trading below it. We expect the EUR/USD to be a bit volatile today, so pay attention to the nearby resistances at 1.1750 and 1.1758. In case the dollar starts growing again, be aware that the daily support levels are located at 1.1729 and 1.1716. The indicators of technical analysis show a strong buy signal; the moving averages are neutral.
