Today we would take a look at the EUR/USD currency pair. The euro suffered significant losses last week, pushing the price lower, but today the pair opened in the green again.
The European single currency is right now trading at its lowest levels since 2017. This continues to be exacerbated by the ECB’s dovishness, as well as fears of a trade war with the United States. Today the euro found temporary support because the US is putting pressure on OPEC to increase oil supply, which would lower the price for crude oil and benefit the oil-importing European economy. For a more accurate picture of what’s in store for the euro, investors are awaiting GDP and CPI reports from the EU to be released tomorrow.
Meanwhile, the American dollar continues to be doing well. On Friday we received a better-than-expected report on GDP growth in the United States for the first quarter of 2019. This helped convince investors that there is no economic downturn in the States, despite a few lukewarm reports lately. Even without interest rate hikes from the Federal Reserve, it seems that the dollar will continue to dominate other currencies.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1151, with the price currently trading very close to it. The daily support levels lie at 1.1140 and 1.1131. The daily resistances are located at 1.1160 and 1.1171. The indicators of technical analysis are confident in giving us a strong sell recommendation.
