Yesterday's trading sessions were subject to low volatility for EURUSD. The currency pair trade within the scope of the 1.3409-1.3444. price range throughout the trading day.
Yesterday, the Eurozone published some of its key economic reports. They turned out to be mixed and ambiguous. Firstly, the Spanish rate of unemployment dropped from 122 700 down to 29 800. Letter on, the investor confidence index (SenTix) dropped from 10.1 down to 2.7 points. Germany's PPI increased from -0.1% up to +0.1% during the reporting period.
Today's European trading session as bearish for the common European currency as the
currency pair managed to drop down to 1.3400.
A couple of hours ago, the Eurozone published some other economic reports. In particular, Germany, Spain , France and Italy released their PMI reports. As for the Spanish PMI, it has been strong above the 50 level since early 2014. The highest point was set in May at 56.5 points. The Italian PMI came out strong by hitting 53,9. However, it was weak below the 50 levels a couple of times this year.
The Eurozone's second biggest economy, which is France, has been showing stable results for 2 months in a row. The latest figures are 50,4, which indicates strength (above the 50 level).
As for Germany, which is the Eurozone's biggest and strongest economy, the PMI index has been pretty strong above 53 points since early 2014. This is a good sign.
As a result, the entire PMI for the Eurozone rallied from 52,8 up to 54,4 in June.
EURUSD
According to the comprehensive technical analysis conducted by Masterforex-V Academy, the H1 chart indicates the following stat of affairs in the market of EURUSD:
As you can see, the mid-term bias si still bearish. The price broke below the bottom of yesterday's price range between 1.3409 and 1.3444. Still the bullish count started from 1.3366 still hods true. So far, it includes 3 waves (marked pink). Further on, from the 1,3444 high, we can see the price developing a bearish count. This is at least a bearish reaction to the previous bullish 3-wave count. The bearish move is reserve by the MF sloping channel (marked green).
A break below 1.3376 will increase the likelihood of a further bearish move.
Alternatively, a break above 1.3424 will give way to a further rally up to 1.3444 and above.
