Today we would take a look at the EUR/USD currency pair. Since Wednesday the pair has been steadily bullish and the rate has surpassed the 1.13 level.
There have not been many surprised regarding the euro recently. Last week the European Central Bank spoke about possibly starting a new stimulus program to support the economy through the current global economic woes. Still, as this did not come as a great surprise, the euro was only minorly set back by the news. Right now the euro is neutral as we await this week’s key data. There will be an inflation report from Germany published this Thursday, and an overall eurozone inflation one published on Friday. These will be key for the euro.
The dollar has finally weakened, this time on the prospects of a change in the monetary policy of the Federal Reserve. After their policy meeting last week, it became clear that the Federal Reserve are seriously considering lowering interest rates in the country. This move is meant to support the economy, where recently there has been a slowdown observed in fundamental reports. The current global economic slowdown is exacerbated by the Sino-American trade dispute and the damage to the US economy is finally beginning to show.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1376, with the price currently trading above it. The daily support levels lie at 1.1366 and 1.1348. The daily resistances are located at 1.1394 and 1.1404. The indicators of technical analysis are confident in recommending a strong buy position.
