Tatiana Kashyrskaia
Monday has been relatively calm so far, without strong directional moves seen in the market of EURUSD. At this point, the currency pair is consolidating within the scope of the 1.3118 - 1.3145 price range.
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. Later on, it retraced back to 1.3135.
At first, the recovery surprised some of the market participants since Destatis released a pessimistic 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.
Meanwhile, Angela Merkel is discontent with the ECB's policies and its president Mario Draghi. She suggested focusing on budget and tax stimulation along with austerity in order to accelerate economic growth in the Eurozone.
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 bias is still bearish. The price is developing another (3rd) sub-wave from1.3195, inside wave 3 of a bigger-scale from 1.3218. If we see the price breaking below 1.3120, the downtrend may well go deeper. The closest level of resistance is 1.3145, today's intraday high.
Tatiana Kashyrskaia
