The strong downward pressure exerted by the sellers of EURUSD weakened a little bit suring yesterday's trading hours. After hitting a local low at 1.3152, the common European currency started regaining some of the lost ground against the US Dollar. The bullish recovery took almost the entire trading day amid a lack of major economic news from the Eurozone and the USA.
By the end of yesterday's trading session, EURUSD recovered up to 1.3208. Still, there were several economic reports yesterday, that came out mixed.
Today's European trading session started from the local high of 1.3217, reached by the currency pair during the nightly trading hours. This is the point, the price is currently going down from, Market Leader reports.
A couple of hours ago, Germany released its own employment stats. The unemployment rate in Germany saw an unexpected increase in August amid stagnating European economies and tensions around Russia and Ukraine. The amount of unemployed Germans reached 2 901 000 people in August 2014, with a glance at seasonality. Analysts had expected a drop by 5000 people. Therefore, the figures came out disappointing. As you can see, the German economy has been shrinking for 2 quarters in a row, which is a wakeup call since Germany's is the biggest economy in he Eurozone.
EURUSD Prospects For Today
According to the trading experts of Masterforex-V Academy, who conduced comprehensive analysis of th H4 chart of EURUSD, the current state of affairs looks as follows:
The bias is still bearish. The bear mid-term market has been underway since 1.3699. The mentioned move is currently a 5-wave count with 4 completed waves inside: wave 1 - 1.3699-1.3575 + wave 2 (a bullish reaction) - 1.3575-1.3650, wave 3 - 1.3650-1.3332 + wave 4 - 1.3332-1.3432. The 5th wave has been going down since 1.3432. At this point it is a 3-wave count itself. The 4th wave is probable up to 1.3282 and the MF sloping channel. IF the price breaks those levels, the scenario will be canceled, thereby completing the entire wave 5 of a bigger time frame.
