24.04.201814:13 Forex Analysis & Reviews: The first reasons for stopping the fall of the euro

The US dollar continued its strengthening on Monday afternoon amid good fundamental statistics on manufacturing sector and growth in home sales from the U.S.

It should also be recalled that many market participants still refrain to demand risky assets after recent ECB President Mario Draghi's statements about a possible revision of the deadline for the complete rollback of the asset repurchase program, which was scheduled for September this year.

According to the report of Markit, activity in the US manufacturing and services sector continued its growth in April this year. It was directly related to the increase in new orders. According to preliminary data, the composite PMI index rose to 54.8 points from 54.2 points in March. Let me remind you that the value of the index above 50 indicates an increase in activity. The preliminary PMI index for the services sector rose to 54.4 points from 54 points in March, while the index for the manufacturing sector rose to 56.5 points from 55.6 points in the same month.

According to the Federal Reserve Bank of Chicago, the index of national activity slightly fell in March that amounted to 0.10 points against 0.98 points a month earlier. Serious pressure on the composite index fell n the production indicator to 0.14. An indicator of employment records -0.07 and a decrease in the indicator of orders and inventories to 0.04.

As I noted above, the U.S. dollar was supported by data on sales growth in the U.S. secondary housing market in March this year.

According to the report of the National Association of Realtors, sales in the secondary housing market grew by 1.1% in March compared to the previous month, amounting to 5.60 million homes. Sales fell by 1.2% compared to the same period last year. Economists predicted that sales will amount to 5.55 million homes.

As for the technical picture of the EUR/USD pair, the target level of 1.2150 seems achievable in the near future. However, an upward correction may also be formed, provided that the bulls will be able to retain support for 1.2190 today. A repeated test will lead to a breakdown and exit to the level of 1.2150. If today, the buyers will again manifest themselves in the area of 1.2190 and 1.2215, the upward correction of the trading instrument will return to the resistance range between 1.2245 and 1.2290.

The Canadian dollar continues to decline against the background of a strong dollar, as well as a decline in oil quotations.

According to the National Bureau of Statistics of Canada, the wholesale trade fell by 0.8% in February this year, amounting to 62.80 billion Canadian dollars. Economists predicted an increase of 0.7%. The main decline was formed due to low sales of cars while wholesale of sales increased by 5.0% compared to the same period last year.