Today we shall take a look at the EUR/USD currency pair. The value of this pair continues to decline steadily and is now close to the strong resistance at 1.10, which is a two-month low.
Right now, there do not seem to be any factors that could boost the euro’s value. Last week there was a ton of new economic data from the European Union: though economic sentiment in Germany improved, the overall eurozone PMI was a bit worse than expected, showing that the economy is still in a fragile state. The European Central Bank did not make any changes to its policy at its Thursday meeting. Today’s IFO reports on the economic climate in Germany were worse than expected. Overall, we expect the euro to remain week in the lead-up to Thursday massive influx of data on unemployment and inflation in the eurozone, which will have a strong impact on pairs with the euro.
The American dollar, on the other hand, remains strong, despite a few hiccups in recent reports. The most recent manufacturing PMI report was rather disappointing, showing that the negative impact of the trade war with China is not going to go away with a single agreement. Tomorrow we await the durable goods orders and the consumer confidence reports, which will both have an impact on the dollar. Still, the USD remains stronger than the euro and can push the price further down.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1028, with the price currently trading below it. The daily support levels lie at 1.1019 and 1.1012. The daily resistances are located at 1.1035 and 1.1044. The indicators of technical analysis recommend a strong sell today.
