The 2-day-long consolidation of the currency pair within the scope of the 1.3420-1.3443 range ended yesterday, at the American trading session, Market Leader reports. The common currency resumed the downtrend against its American counterpart mid positive economic figures from the USA.
In particular, yesterday's American trading session indicated a downswing of EURUSD on higher US consumer confidence. The index managed to reach 90,9 points, there by hitting the highest level since 1985.
As for today's European session, it is still subject to the bears' domination. The common currency went on declining against the US Dollar earlier today, thereby setting a new local low, which is currently located at 1,3041.
According to the trading experts working for Masterforex-V Academy, even the Spanish GDP report, which came out strong, failed to support the common currency. Even though the consumer price index in Spain dropped down to -0,3% in July, according to INE-NIS, the decline is caused mainly by stable prices on such fuels, foodstuffs and non-alcoholic beverages. The report failed ot come up to analysts expectations ( +0,2%).
Still, with such low inflation figures, the GDP of the Eurozone's 4th economy increased by 0,6% in Q2 2014, which is good news for the Eurozone and the common currency. Actually, the figures turned out stronger than expected (0,6% against the expectations of 0,5%). Still, the common currency somehow ignored this event and continued its way down against the US Dollar, Masterforex-V Academy reports.
The experts assume that the mid-term downward tendency is still underway. This si confirmed by the situation in the H1 chart of EURUSD. After breaking below the bottom of the 1.3420-1.3443 range, the currency pair resumed the downtrend. This means, that the price is currently building the 5th wave of the downtrend starting from 1.3484. The 5th wave seems to be a 5-wave count in itself.
At this point, there are no reasons to consider a reversal. The bias is still bearish.
