The euro is losing ground. Business activity declines

During the European session, the euro lost some positions against the US dollar, which is more due to technical factors and profit taking on the short positions of the American. Also, some pressure on the single currency was provided by a decline in business activity in the euro area.

• According to published preliminary data, the index of business activity in the manufacturing sector in March was 56.6, which is lower than the previous value at the level of 58.6.
• The index of business activity in the service sector fell to 55.0, against the previous value of 56.2.

Technical analysis: Despite the weakening of the US currency, the EUR/USD pair still maintains a downtrend in the short term. The closest support levels are 1.2300, 1.2260. If the growth continues and the price is fixed above the 1.2375 mark, one should expect the growth to continue to the levels of 1.2435, 1.2470.

Fig. EUR/USD. The current price is $ 1.2350.

Alexander Sivtsov