After hitting today's high at 1.3524, the common currency declined down to 1.3518 at the beginning of the European trading session. The decline was caused by weaker-than-expected economic data from Germany published a couple of hours ago by Destatis.
The inflation index of the Eurozone's biggest economy remained weak in June. In particular, Germany's PPI remained weak at 0.0% during the reporting period, even though leaving the negative zone. Analysts had expected an upswing to 0,1%. At the second part of the European trading session, the currency pair is trading close to 1.3519.
The market is probably waiting for Bundesbank's report.
EURUSD Prospects
According to the comprehensive analysis of the H1 chart of EURUSD conducted, by Masterforex-V Academy, the current state of affairs looks as follows:
The bias is still the same, which means the bears are still dominating the market in mid-term perspective. The bearish trend includes several waves:
1.3650-1.3589 +1.3589-1.3639 + 1.3639-1.3490 (the latest one is a 5-wave count).
Still, it is recommended to focus on the bullish move started from last week's low of 1.3490, which ended at today's high located at 1.3548. The mentioned wave van be both wave 4 of the current bearish trend and wave 1 of the new bullish trend.
In order to confirm the bullish scenario, the price will have to break the pivot line located at 1.3546 followed by a break above 1.3548. Alternatively, in order to continue the bearish trend, the price will have to break below 1.3490.
