Yesterday, the bulls managed to defeat the bears on the EURUSD battleground. This resulted in the currency pair rallying up to 1.3414. Later on, this turned out to be the intraday high. It should be noted that the currency pair rallied amid the poorer-than-expected retail sales report that came from the United States. In particular, the US retail sales declined from 0.4% down to 0.1% in July 2014. This is the worst performance in 6 months.
Still, the common currency faille to stand the ground, thereby letting the price retrace down to 1.3400. Later on, at the end of the trading day, the currency pair retraced further down to 1.3370, where it closed the trading day.
As for the current trading day, the common currency the common European currency started it with a downswing against the US Dollar. At the very beginning of the European trading session, the price dropped down to 1.3348.
It seems like the Euro is losing value amid negative GDP stats. The thing is that a couple of hours ago, Germany and France released their GDP figures, which seem to have disappointed the market. In particular, in Q2 2014, the French GDP remained unchanged at 0%. Meanwhile, the German economy EEMS to be losing its positive tendency. The German GP decreased by 0,2% during the same reporting period (with a glance at seasonality). This is what Destatis reports. Still, Q1 2014 was more successful for the German economy since it managed to increase by 0,7% during the reporting period. Apparently, these are the key reasons why the common European currency has been showing signs of weakness since the start of the European trading session.
Masterforex-V Academy EURUSD Prospects
According to the trading experts of Masterforex-V Academy, the currency pair is currently trading within the scope of the 1.3335-1.3414 range. The current mid-term bias is still bearish. At this point, we can se the price completing the 5th wave of the trend between 1.3432 and 1.3335. This appears to be a shortened wave. Still, in order to reverse the trend, the price will have to break and consolidate above 1.3428. Otherwise, the bearish tendency is likely to continue.
