Amid negative economic data on Germany's economic performance, the downward pressure on the common European currency strengthened.
At first, during the start of the European trading session, the currency pair went down to 1.3355, after Italy published its inflation figures, which turned out to be stable at -0,1%.
Still, those figures (CPI) are still negative, which means that the situation is unfavorable.
Later on, Germany revealed disappointing figures as well. In particular, all the 3 ZEW indices published today saw a major decline amid higher geopolitical risks connected to the situation in Eastern Ukraine. The disappointing figures increased the downward pressure, thereby pushing EURUSD down to 1.3342. The common European currency keeps on losing its value against the US Dollar. At this point, the currency pair is trading clos to 1.3338.
American Session. EURUSD Prospects
During today's American trading session, market participants will be focused on some economic reports coming from the USA. In particular, the US Department of Labor is going to publish reports on new vacancies and current labor power. The 2 indicators have been strengthening since the beginning of 2014. The rally has been strong without any retracements.
According to the trading experts working for Masterforex-V Academy, the most popular currency pair shows the following state of affairs in the H4 chart:
The mid-term bias is still bearish, which means the bears are still in control of the situation.
The bullish move from 1.3332 up to 1.3432 turned out to be just wave 4 of the downtrend. Wave 5 has been going down from 1.3432.
At this point, we can see the price breaking below 2 major levels - 1.3366 and 1.3343, and managed to consolidate below them. At this point, the currency pair needs to break and consolidate above 1.3428 to reverse the trend. Without this technical aspect, the price is likely to continue the downtrend.
