Today we would return to the EUR/USD currency pair. The pair climbed steadily over the past week, but is opening at somewhat of a low today.
As we have already established, the European single currency lacks any serious incentives to grow. The ECB is determined to stay on their dovish policy course and no major upsets are expected on that front. This week we expect a report on core inflation for August, but considering that other recent releases haven’t had much of an impact on the euro, we don’t expect this data to shake the single currency in any direction. For now the economic issues in Turkey seem to be well-contained and have not causes damage to the eurozone, which is why we expect the EUR to remain neutral.
The American dollar slowed down its growth recently. The Federal Reserve remains committed to their planned interest rate increases, but last week seemed a bit wary of the market turmoil. There could be fundamental pressures on the dollar coming from the trade war and the dispute with Turkey. This week we expect a GDP report that is somewhat lower than the previous one. Moreover, there is trouble in the White House as the Russia investigation tightens.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1638. The daily support levels lie at 1.1623 and 1.1601. The daily resistances are located at 1.1660 and 1.1675, but we do not expect the pair to touch them today. The indicators of technical analysis and moving averages are a bit mixed currently, but both lean towards a buy signal.
