05.03.201811:48 Forex Analysis & Reviews: Corrective growth of the euro has begun

The U.S. dollar continued to decline against the euro on the background of a technical correction, which was formed earlier this month. However, it is still too early to talk about any serious reasons for the growth of the European currency in the short term.

The released of data in the second half last Friday has slightly affected the quotes of the US dollar, as they had a diverse character.

For example, according to the Institute of Supply Management of New York, the index of current conditions for doing business in February this year fell very seriously to 54.5 points against 72.5 points in January. Let me remind you that the index values above 50 indicate an increase in activity. The expectations index for future conditions fell to 64.7 points. It is possible that talk of trade wars that may be instigated in the U.S. this spring could create considerable concern for business owners.

However, consumers have shown more positive. According to the data, the indicator of moods of American consumers grew in February. Volatility in the financial markets did not put serious pressure on the mood.

According to the data, the consumer sentiment index of the University of Michigan rose to 99.7 points in February this year against 95.7 points in January. Economists expected the index to be 99.5 in February. As noted in the report, the main optimism of consumers is associated with estimates of employment and wage increases.

As for the technical picture, the large resistance levels in the 1.2350 area do not allow buyers to continue to grow the euro at the beginning of this month. Once again, this shows that while large players who continue to strengthen risky assets and at the same time waiting for new signals from the European regulator, which again took a wait-and-see attitude, as evidenced by the statements made by ECB representatives last week. Only a breakout in the level of 1.2350 will allow us to count on further updating of 1.2410 and 1.2460.

The main support for the trading instrument is the area of 1.2265, the breakthrough of which will hit the stop-orders of buyers, which will collapse EUR/USD pair to the monthly lows of 1.2190 and 1.2150.

The British pound continues to be traded in the lateral channel after the British Prime Minister Theresa May last Friday.

PM May only stated that, given the alarming growth of protectionism, Britain could set an example by its international trade agreements. However, what specific conditions she spoke about remained a mystery.