Today we would take a look at the EUR/USD currency pair. The pair spent all of last week declining, but today it opened in the green again.
The euro is experiencing a lot of stress right now. The European Central Bank, whose monetary policy has been dovish ever since the 2008 financial crisis, is expected to implement a new round of stimulus measures and possibly lower interest rates below their current level of 0.00%. Moreover, Italy is also emerging as a source of instability for the eurozone as the country may be heading into preliminary elections. In addition, the threat of a no-deal Brexit remains, preventing the euro from strengthening.
Meanwhile, the American dollar is reaping benefits due to its safety asset properties. The US economy has been giving investors mixed signals lately, increasing speculation that the Federal Reserve might consider another interest rate decrease. However, due to the ongoing trade war with China and Trump’s statements from yesterday that he would not enter into a trade agreement until the Hong Kong protests are resolved, risk aversion is boosting the USD.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1090, with the price currently trading above it. The daily support levels lie at 1.1067 and 1.1043. The daily resistances are located at 1.1114 and 1.1137. The indicators of technical analysis are confident in recommending a strong sell on this pair.
