The euro remains under pressure. Business activity in the euro area is declining

The single currency continues trading near the week’s lows against the US dollar, which is largely due to the strong position of the US currency. Also, some pressure is exerted by weak data on business activity in the Eurozone.

• According to preliminary data, the index of business activity in the manufacturing sector fell to 58.5 in February, against the value of January at the level of 59.6.
• The index of business activity in the services sector decreased to 56.7, which is lower than the previous value at the level of 58.0. In turn, the data remains above the 50.0 mark, which indicates a positive situation in the production and non-production sectors of the Eurozone economy.

Technical analysis: The pair EUR/USD is traded near the minimum marks of the current week. As in the medium and long term, the pair maintains an upward trend. The main resistance levels are 1.2370, 1.2410. Support levels are 1,2270, 1,2230.

Computer analysis: On the H1 chart, the FOREX MACD indicator forms “Bullish divergence“, so in the course of today’s trading, one should expect some recovery in the price of the instrument.

Fig. EUR/USD. The current price is $ 1.2316.

Alexander Sivtsov