The WSJ dollar index has been completely closed last month at the highest level since September.
Despite the weak positions of the US dollar, buyers of the European currency are also waiting on the sidelines after a series of weak preliminary data on the manufacturing sector in Germany and the euro area.
According to the report, the German purchasing managers' indexes (PMI) in July of this year were the least of the expected forecasts which are primarily due to the slow growth rate of economic activity in the private sector.
According to the data, the preliminary PMI index for Germany's manufacturing sector fell to 58.3 points, while the index for the services.
The preliminary index of supply managers for the manufacturing sector in France was 55.4 points in July while economists expected the index to be at 54.6 points.
In the whole of the euro area, the composite purchasing managers' index is also down to 55.8 points in July from 56.3 points in June, worse than economists.
It can be noted in the report that the main reason for the fall of the manufacturing sector
As for the technical aspect of the EURUSD pair, a number of indicators indicate a clear overbought of euro versus the US dollar, which could lead o a deeper downward correction in the near future. However, there are no signals yet to reverse the trend. It is best to look at new long positions when adjusting the trading instrument in the support area of 1.1610 and 1.1560. The return of the European currency to 1.1675 which is a massive resistance level located in the region of monthly highs, indicates the resumption of demand for risky assets and the continuation of the upward trend moving towards 1.1710 and 1.1760.
