Alex Bobrov
The mid-term downswing of the common European currency against its counterpart form the USD has just suspended a little bit. In particular, after Friday’s decline down to 1.2500 amid strong Non-Farm Payrolls report (the amount of new jobs increased from 18K up to 248K in September), EURUSD started this trading week today from recovering up to 1,2555. This recovery took place during the European trading session.
Still, the recovery took place despite weak economic stats from Germany. In particular, Germany’s manufacturing orders saw a considerable decline in September 2014. The figures went negative this time – from +4,9% down to -5,7% while experts had anticipated -2,5%.
It seems like the Eurozone is still seeing a slowdown in manufacturing activity. The negative tendency is accelerating. September’s pace of decline turns out to be the strongest one since April 2014. At the same time, the Eurozone’s Manufacturing PMI dropped from 45,8 points down to 44,8 points while staying below the 50 level, which is critical in terms of differentiating between weakness and strength.
EURUSD
As usual, Masterforex-V Academy and its trading experts help Market Leader and its audience define the current situation and the near-term prospects in currency markets like EURUSD.
The experts report that the mid-term bias in the market of EURUSD is still bearish despite the recent recovery. The downtrend has been underway from 1.2994. The bearish move is a 5-wave count in itself. The 5th wave of the count is going down from 1.2699. At this point, the chart below is showing us some signs of its end. Still, the probability o a further downtrend is still high.
If there is a break above 1.6217, the 5th wave will be completed. If the price breaks above 1.2695, the entire 5-wave count of the bearish trend will be completed. The extra levels of resistance are given in the graph below:
Alex Bobrov
