During the European trading session, EURUSD is going down from the local high of 1.3218. At this point, the downswing has been suspended at 1.3169.
The trading day is pretty full of economic figures coming from the Eurozone. The data are mixed. At first, Germany published poor economic figures concerning the local labor market, thereby indicating higher rate of unemployment in the Eurozone's biggest and strongest economy, which is a wakeup call for the entire European economy. The poorer-than-expected report from Germany was followed by stable GDP in Spain – 0.6% in Q2 2014. Despite the fact that the figures matched analyst expectations, this rather poor performance shown by the Spanish economy, which cannot definitely contribute ot the overall economic recovery in the entire Eurozone.
Later on, we found out that the Eurozone's M3 money supply growth accelerated from 1,6% p to 1,8% in July 2014, Market Leader reports.
ECB Pressure Builds Up
The drop in household and corporate lending in the Eurozone slowed down in July while the local money supply increased during the reporting period. Still, the expectations aren't enough to assure traders and investors that the ECB is finally going to quit its intension to apply further monetary stimuli in order to back economic recovery in the entire region.
On top of that, the European Central Bank started supervising regional banks in July in order to monitor reserves. This way, the cental bank lays hopes that it will manage to supply enough funding to the banks.
EURUSD Prospects
Masterforex-V Academy experts conducted comprehensive analysis to find out that the current state of affairs in the H1 chart of EURUSD looks as follows:
The mid-term bias is still bearish. The downtrend is still underway. The sellers are projecting the move from 1.3411. The move includes a completed wave - 1.3411-1.3152. This is a 3-wave count in itself. It is followed by another completed move This is a bullish reaction - 1.3152-1.3218. At this point, this can be either a reaction of a bigger-scale level or a new first wave of the opposite trend. Wave 4 is possible if the price fails to overcome 1.3282 and the MF sloping channel. A bearish reaction to 1.3152-1.3218 is probable only if the price doesn't break the MF pivot located at 1.3157. If the break is the case, the likelihood of a futher downswing will increase.
