Yesterday, EURUSD din't show much volatility since traders are waiting for today's PMI reports, which are expected to be major market drivers for today. During yesterday's European trading session, the currency pair traded a little bit above 1.35.
At the same time, the Spanish unemployment report indicated an increase by 113K in January, thereby shocking the markets, which had been waiting for lower unemployment rate.
Still, February started from positive figures since European PMIs keep indicating growth. In particular, the Spanish PMI increased up to 52,2 above the expected figures of 51,3. For reference sake, any value above 50 indicates growth. The Italian index indicated a smaller increase up to 53,1 but analysts had expected an increase up to 54.0.
As far as EURUSD prospects are concerned, there are 2 major scenarios offered by Masterforex-V Academy:
The first one implies a recovery, which is not going to break above the top of the sloping channel and pivot 1,3605. In this case we may assume that the price is likely to continue the downtrend (the red count).
The second scenario implies a break above the top of the sloping channel and the pivot. If this is the case, the trend will be reversed to start a rally (the blue count).
