Today we would take a look at the EUR/USD currency pair. The pair has been in a steep decline all through February so far.
The economic situation in Europe continues to be suboptimal. Recent fundamentals provided proof for the ongoing economic slowdown in Europe, showing that the poor global situation is also affected the eurozone. Further weakness in the single currency is expected as in the current state the European Central Bank is likely to remain involved in supporting the economy with stimulus packages, even though their program ended in December. The EUR would most likely continue decreasing in value.
The American dollar, on the contrary, remains strong. There has been a bit of a disappointment with data coming from the US, but the reserve currency is receiving a much greater confidence boost to not be shaken by such news. Moreover, due to the uncertainty on the financial markets elsewhere, the dollar is an appealing investment opportunity. Still, beware of another government shutdown as funding expires this week.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1324, with the price currently trading below it. The daily support levels lie at 1.1314 and 1.1304. The daily resistances are located at 1.1334 and 1.1344. The indicators of technical analysis and the moving averages agree on a strong sell recommendation in the daily term.
