EUR: The direction of the euro will depend on today's PMI data

The American dollar stopped its growth, which was formed yesterday in the first half of the day against the European currency after the release of a number of weak fundamental statistics for the eurozone. However, the decline in the EUR / USD pair stopped after a similar series of weak data on the US economy, which came out in the second half of the day.

According to a report by the US Department of Commerce, manufacturing orders in the United States fell very strongly in November, although economists had expected growth.

The data came out with a delay due to the suspension of the government. Thus, industrial orders in the US in November 2018 fell by 0.6% compared with October, while economists had expected orders to grow by 0.1%. Orders excluding transport decreased by 1.3%, while orders excluding defense orders fell by 1.1%.

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Orders for durable goods in November increased by 0.7% compared with the previous month.

The index reflecting employment trends in January of this year decreased compared with the previous month. As indicated in the Conference Board report, the employment trends index in January dropped to 109.56 points against the December value of 110.96 points. As noted in the Conference Board, a slowdown in employment growth is expected in 2019, however, given the fact that overall economic activity grew at the end of 2018, employment growth will still remain strong in early 2019.

A negative contribution was made by a report on the indicator of conditions for doing business in the city of New York. According to the Institute for Supply Management, the ISM-New York current business environment index in January 2109 dropped to 63.4 points from 65.4 points in December. Let me remind you that the index values above 50 indicate an increase in activity.

As for the technical picture of the EUR / USD currency pair, the pressure on the euro will remain as long as the trade is conducted below the resistance of 1.1450. The main task of the bears will be a major support update in the area of 1.1405, and an unsuccessful return to the resistance level of 1.1450 will be a good signal in the first half of the day to increase short positions in risky assets, but much will depend on what statistics on the composite PMI index for largest eurozone economies.

In the case of a trading instrument returning to the resistance level of 1.1450, a larger upward correction can be expected in the maximum area of 1.1490.

The material has been provided by InstaForex Company - www.instaforex.com