Yesterday, the common European currency was under pressure exerted by the sellers.
EURUSD started going down since the local high of 1.3218. By the endo of the trading day, the price reached 1.3159. his is still the local low.
Yesterday, we saw positive stats coming from the USA. They concerned the local labor and housing market. In particular, the amount of initial jobless claims shrank from 299 000 down to 298 000 last week, which is definitely a positive sing for those who purchase the US Dollar.
At the same time, the amount of incomplete sales in the local housing market increased up to 3.3% in August. The sales increase took place from 102.5 points up to 105.9 points.
On top of that, the US GDP increased by 4.0-4.2% in Q2 2014 while GDP index gained 0,2% (2% to 2,2%). Still, the positive stats failed to trigger a new wave of strengthening of the US Dollar against the Euro.
At the very beginning of the European trading session, Destatis reported about a retail sales increase in Germany. The real and nominal retail sales volume increased by 0,7% and 1% respectively in July 2014. However, if to consider the retail sales figures adjusted to seasonality, they were much lower, which is a sign of weakness.
Once again, the news failed to trigger a directional move, thereby letting the currency pair trade close to 1.3170. Later on, the common currency manage to regain a bit of the lost ground, thereby recovering up to 1.2185, Market Leader reports.
EURUSD Prospects
According to Masterforex-V Academy, the H1 chart of EURUSD is currently showing us the following picture:
The 1.3411-1.3152 bearish move is completed. Further on, we can see a bullish reaction to the move - 1.3152-1.3218 – as well as another move bearish wave - 1.3218-1.3159. Both are completed as well. The last downward move corresponds to the reaction to the preceding bullish move. Still, the bias is bearish until the price breaks above the local high of 1.3218.
