Today we would take a look at the EUR/USD currency pair. After ending last week on a positive note, today the rates opened in the red again.
Somewhat unexpectedly, the European single currency received strong support last week. The reassurance came from the European Central Bank, who refused to change interest rates across the eurozone, proving that they believe the economy does not need any additional help at present. Moreover, they revised the GDP projections for the region upwards, which means they expect the EU economy to stabilize and grow. This kind of confidence was reflected in the euro.
The American dollar, on the other hand, has had some trouble lately. Fundamental reports from the United States are no longer as strong as they used to be, as the American economy is catching up with the trade war started by President Trump. Furthermore, investors are convinced that the Federal Reserve might have to lower interest rates this year, possibly more than once, in order to protect the US economy. This has weakened the dollar.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1321, with the price currently trading below it. The daily support levels lie at 1.1309 and 1.1300. The daily resistances are located at 1.1330 and 1.1342. The indicators of technical analysis are confident in recommending us a strong buy.
