Today we would take a look at the EUR/USD currency pair. The euro somewhat surprisingly has managed to keep rising against the dollar.
The euro is still not a well-performing currency. With low inflation, we do not see the European Central Bank changing its stance anytime soon. That being said, Friday actually brought several positive reports from the eurozone, especially Germany, which helped the euro’s reputation in the short term. We might see the EUR surpass the May 1 highs, but in general it will still be difficult for the single currency to stabilize much higher than that.
The American dollar is currently suffering some weakness. First and foremost, this is due to disappointing inflation data published on Friday: all three CPI reports were lower than forecasted, showing that there is a slowdown in the American economy. This also means that the Federal Reserve will not be making any hawkish revisions to its monetary policy. Moreover, the exacerbating trade conflict with China, in which the United States is involved, is also not helping things, especially considering how much it would harm American consumers.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1237, with the price currently trading slightly above it. The daily support levels lie at 1.1229 and 1.1223. The daily resistances are located at 1.1243 and 1.1251. The indicators of technical analysis are confident in giving us a strong buy recommendation.
