The common European currency is still recovering a bit against the American currency on Thursday, July 17th, At the beginning of the European trading session, the common currency started gaining value against the US Dollar after a major 2-day-long decline triggered by Janet Yellen’s speech. She is currently presiding over the US Federal Reserve, also known as the Fed.
At the second part of the European trading session the common currency managed to recover up to 1,3539. The rally was backed stable inflation figures from the Eurozone. In particular, the Eurozone CPI published by Eurostat has been stable at 0,5% for 4 months in a row.
Meanwhile, the ECB is going to conduct a series of stress tests within the scope of the European banking system. The ECB has revealed the plan for several banks of the region – from measures to regulation tools to fight bad loans. The central bank also undermined that the banks would get only 2 weeks to resolve the issue concerning the lack of capital.
At the same time, the ECB is reconsidering and re-estimating 128 European banks and evaluating their ability to withstand future stresses. The results FO the stress tests will be revealed in late October 2014.
EURUSD Prospects
The experts working for Masterforex-V Academy keeps on analysing the current situation in the H1 chart of EURUSD to find out the near-term prospects. The bias is still bearish. This means that the trend started from 1,3699 is still underway despite a bullish reaction.
The current trend includes several waves, including 2 big-scale waves - 1.3699-1.3575 and 1.3575-1.3650 (marked brown). The 3rd wave started from 1.3650. The latest bearish move consists of 3 waves: 1.3650-1.3589 + 1.3589-1.3639 + a move started at 1.3639.
As far as intraday trading is concerned, we can should keep track of the following levels of support nd resistance:
Resistance: 1.3539, 1.3569, 1.3571, 1.3616, 1.3625 + 1.3643; 1.3650 +1.3663 + 1.3699.
Support: 1.3520 + 1.3512 (02).
