Amid yesterday's speech made by Janet Yellen, who currently presides over the Fed, the US Dollar keeps on gaining value today. During the second part of the day, he currency pair set a bearish session trend. EURUSD dropped down to 1,3525, Market Leader reports.
US Dollar Gains Value Amid Positive Inflation Stats
A couple of hours ago, the US Department of Commerce revealed another inflation report – PPI. The wholesales prices grew higher than expected in June. The leading indicator of consumer inflation increased by 0,5% in June after declining by 0,2% in May. According to the survey, the respondents had expected a 0,2% increase.
Fuel expenses boosted by 2,1%, thereby showing the highest increase since February 2013. Crude oil prices dropped. By the way, Janet Yellen underlined this fact, saying that the recent growth was temporary. Wholesale foodstuff spending dropped by 0,2% in June. This is the second consecutive decline in 2 months.
EURUSD Prospects
According to the comprehensive analysis made by Masterforex-V Academy , EURUSD is currently trading within the scope of a mid-term downtrend. The current trend closed bigger-scale waves - 1.3699-1.3575 and 1.3575-1.3650. The 3rd wave of the rend is currently underway from 1.3650. It consists of 3 subwaves - 1.3650-1.3589, + 1.3589-1.3639 and the current one going on from 1.3639. The current wave count has complicated structure (marked pink in the char below)
The following levels of support and resistance are currently worth paying attention to:
Resistance: 1.3569, 1.3571, 1.3616, 1.3625 + 1.3643; 1.3650 + 1.3663 + 1.3699.
Support: 1.3528 – 200%-138.2% + 1.3512 (02).
