Today's European trading session has been relatively calm, without strong directional moves. At this point, the currency pair seems to be making a bullish reaction to the previous bearish move that resulted in setting a new low of the year at 1.3318.
Nevertheless, the bias is still bearish, which means the bears are till dominating the market of EURUSD. This is confirmed by Firday's decline (during the American trading session). Still, as we have just mentioned, the price managed to recover up to 1.3140 during the first part of the European trading session.
This recovery came as a surprise since Destatis published a negative report on the German GDP. With a glance at seasonality, the index dropped by 0,2% for the second consecutive month. With that said, the Germany's GDP growth suspended by 0,8% in Q2 2014.
Still, the overall Eurozone industrial sector seems to remain strong. This is confirmed by the reports published by the Eurozone's 4 major economies - Germany France, Italy and Spain . Even though Germany indicated a decline, the index is still above the 50 level, while the 3 remaining economies indicated gains.
The overall index testifies to the expansion of the Eurozone's industrial sector.
EURUSD
The chart below, courtesy of Masterforex-V Academy, indicate the current state of affairs in the market of EURUSD, the most popular currency pair among Forex traders. The thing is that the mid-term downtrend is still underway despite a tiny recovery taling place at this point. The 3rd wave of the bearish count is going on from 1.3411. The 3rd sub-wave of the mentioned move is going down from 1.3218. The overall bias is bearish, which means that Forex traders are recommended to go short EURUSD.
