Solid News
Business Activity in the EU is Gradually Recovering
3/2/2023 12:02 PMThe EUR/USD pair is trying to recover, trading at 1.0648, after the publication of a block of macroeconomic data yesterday.
Thus, the February Manufacturing PMI in Spain rose to 50.7 points from 48.4 points earlier, and in Italy – up to 52.0 points from 50.4 points. Similar French and German figures slowed down slightly, amounting to 47.4 points and 46.3 points compared to 47.9 points and 46.5 points in the previous period. The number of unemployed in Germany in February increased by only 2.0K instead of 9.0K expected by analysts, which allowed the unemployment rate to remain at 5.5%, as a month earlier, however, February inflation data recorded an acceleration of the harmonized consumer price index last month from 9.2% to 9.3% YoY, while forecasts assumed reaching 9.0%, and from 0.5% to 1.0% MoM, which, in turn, exceeded experts' expectations by 0.7%.
Meanwhile, the US dollar began to gradually decline against the publication of negative statistics in the manufacturing sector from the Institute of Supply Management (ISM): the index of business activity in February amounted to 47.7 points, lower than the analysts' forecast of 48.0 points, embedded in the price, reached 49.1 points compared to 50.6 points earlier.
On the daily chart, the trading instrument is correcting within the global ascending corridor with dynamic boundaries of 1.0550–1.1100.
Technical indicators weaken the sell signal: fast EMAs on the Alligator indicator are kept below the signal line, narrowing the range of fluctuations, and the AO histogram forms corrective bars in the sell zone.
Resistance levels: 1.0710, 1.0920. | Support levels: 1.0540, 1.0330.