Today we would take a look at the EUR/USD currency pair. This instrument seems to be somewhat calm right now as investors prepare for the day off this Thursday when the United States will be celebrating Thanksgiving.
On the side of the European currency, there was some negativity yesterday due to news from Germany that Angela Merkel failed to acquire the necessary majority to form a government. However, this news had only a limited impact on the single currency and we expect the euro will hold its ground while the American markets are closed for the holiday. The dollar itself is currently under the influence of both the news surrounding the difficulties in the adoption of tax reform and the upcoming speech by Janet Yellen. Anything we hear from the Federal Reserve at this point serves as an indication as to whether or not the Fed will proceed with their planned rate hike in December.
In terms of the daily chart, today the pair has a pivot point located at 1.1754. Currently the price is trading below the pivot, so we need to keep a close eye on the daily support for the pair at 1.1700, 1.1667, and 1.1613. If the dollar loses positions, then the euro may push the price above the pivot to the nearby resistances at 1.1787 and 1.1841. Nevertheless, for now the first scenario seems more plausible.
The indicators of technical analysis show somewhat mixed signals, but most agree on taking a buy position.
