Today we shall take a look at the EUR/USD currency pair. After a minor recovery, the pair began losing momentum and dropped again over the weekend.
Right now the European single currency is experiencing quite a bit of pressure due to the worsening global trade situation. To begin with, the EUR is suffering from the lack of a trade agreement between the United States and China. Though the two countries seemed close to signing a deal in November, in recent weeks things have gone south, and now investors doubt we would see the conflict resolved before the year’s end. In addition, the US is currently considering imposing tariffs on European goods, which would only make things worse for the slowing European economy. CPI and employment data this week will also be an important factor for the price of the euro.
Most of the things that will influence the dollar this week will come at the very beginning, as the United States is preparing for a long Thanksgiving weekend. Right now the USD is gaining momentum on hopes that the US and China may still reach an agreement. Donald Trump tried to appease China by not signing the US bill that makes a trade deal dependant on China’s handling of the Hong Kong protests. This week we expect a trade report on Tuesday and GDP data on Wednesday, which will both have a likely impact on the dollar.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1021, with the price currently trading below it. The daily support levels lie at 1.1018 and 1.1014. The daily resistances are located at 1.1025 and 1.1028. The indicators of technical analysis recommend a strong sell today.
