Euro remains positive

The single currency continues its upward trend against the US dollar, after the publication of preliminary data on business activity in the euro area.

• The index of business activity in the manufacturing sector in January was 59.6, which is lower than the previous value at the level of 60.6.
• Composite index of business activity (PMI) from Markit increased in January to around 58.6, exceeding the previous value at 58.1.
• The index of business activity in the services sector in January rose to 57.6, exceeding the previous figure at 56.6.

Also, the growth of the EUR/USD pair is caused by the general weakening of the US currency against the background of the continued decline in the profitability of the US government bonds, which, on average, declined by -0.10% on Wednesday.

It is also worth noting that tomorrow the market will wait for the January meeting of the ECB. On the eve of this meeting market participants can record profits on long positions in relation to the single currency, as the Central Bank does not expect any statements about changes in the monetary policy.

Technical analysis: The pair EUR/USD broke out of the flat range, updating the maximum value of January to the level of 1.2343. At the moment, the main resistance levels are 1.2385, 1.2425. The main support levels are 1.22270, 1.2230.

Fig. EUR/USD. The current price is $ 1.2340.

Alexander Sivtsov