More bearishness is in store for this pair, so we can sell it.
Today we would take a look at the EUR/USD currency pair. The price has been declining lately and despite a rising candle on November 1, it appears that the bearishness is likely to continue.
The European single currency continues to show weakness. Although this week we expect a couple of reports from the eurozone (retail sales, data on Germany’s industry), they are not of high importance, so even if the data is positive, it won’t be able to support the euro. With no surprises coming in terms of economic reports or announcements from the ECB regarding monetary policy, the euro lacks incentives to strengthen. This week it is likely to be influenced by the continued discussions over Italy’s budget, as well as the Brexit negotiations.
The American dollar this week will likely strengthen even further. It is well-supported by positive data, but most importantly, it could mark gains based on the results from the midterm elections to be held tomorrow. The preliminary expectations of analysts are that Democrats will take over some seats from the Republicans, which would reign in President Trump and create a more stable image for the United States, calming the markets.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1395, with the price currently well below it. The daily support levels lie at 1.1383 and 1.1379. The daily resistances are located at 1.1403 and 1.1407. We expect the price to continue falling today. The indicators of technical analysis and the moving averages are confident in giving us a strong sell recommendation.
