Today, on June 2nd, the common European currency is up by 0,25% against the US Dollar after the eurozone published economic figures form May. The figures indicated the weakest production growth in the region in 6 months.
The economic recovery in the European manufacturing sector slowed down after a decline in the amount of new orders coupled with lower employment.
According to the index published by Markit, we could see a decline from 53,4 in April down to 52,2 in May. The pace of production growth accelerated in the Netherlands and Spain only. They hit 52,9 in May, which is the highest level of performance in 4 years.
At the same time, the poorer-than –expected economic reports only gave the European Central Bank more confidence in terms of the necessity to stimulate the eurozone economy.
At the same time, the Euro went down by 0,25% against the US Dollar after the report, Masterforex-V Academy reports. According to the experts, the currency pair (EURUSD) set a new local high at 1,3635 and then continued the downtrend.
The big-scale bearish wave started at 1,3669 and ended close to 1,3585. If to believe the Fibo grid projected by Masterforex-V Academy, the next bearish target is 1,3535.
However, if the situation changes to let the bulls dominate the market for while and continue the bullish reaction, we may well see the price going up to 1,3635, 1,3649 and 1,3669.
