Masterforex-V Academy reports that the common European currency used to be showing a moderate bullish trend against the US Dollar since early February. Still, after yesterday’s Fed meeting, EURUSD started declining while getting closer to the MF pivot and sloping channel. What are the reasons for the decline?
According to the trading experts, EURUSD is currently going down on poor economic figures coming from Germany. In particular, the German PMI figures came out lower than expected - 54,7 instead of 56,3. Apparently, Germany is the eurozone’s leading economy, the so-called locomotive o the European economy. So, any negative economic data from Germany instantly affect the common currency, thereby making EURUSD and other Euro-related currency pairs go down.
As far as the near-term prospects of EURUSD are concerned, Masterforex-V Academy believes that the mid-term bullish bias of EURUSD is not over year despite the current decline. The reason is that the defensive pivot (1.3690) and sloping channel are still unbroken. At this point, the currency pair is trading between 2 Fibo levels - 50% and 76,4%. Therefore, the current bearish momentum cannot be considered the beginning of a reversal at this point.
The current level of resistance is 1.3665(70). On breaking and consolidating above it, the price will get a chance to hit 1,3800. Still, if the price does manage to break and consolidate below 1.3690, it may well hit further targets 1.3640 and 1.3610, then
1.3640, 1.3560 and 1.3482.
