The common European currency spent yesterday trying to recover against the US Dollar. In particular, the currency pair managed to rally from the local low of 1.3109 up to 1.3159, which still remains the high of the current trading week.
The bullish recovery of EURUSD took place amid positive stats on the Spanish PMI, which strengthened from 56.2 up to 58.1, thereby showing the strongest monthly gain since December 2006.
Still, during yesterday's American trading session, the common currency started losing some of its value against the US counterpart again. This decline was triggered by positive stats revealed by the US Department of Labor. In particular, the manufacturing orders improved drastically from 1,5% up to 10,5%. This is the record high level in 5 years.
Still, the decline was a minor one. The price managed to stay above 1.3130 and regained a bit of the captured ground overnight. Today's European trading session started with a further drop from 1.3153 to 1.3140.
Germany published another economic report a couple of hours ago. In particular, new manufacturing order boosted by 4,6% in August 2014 against -3.2% seen during the previous reporting period. With that said, this happens to be the highest value this year.
Germany's domestic orders improved by 1.7% while export orders gained 6,9%. This is also good news.
EURUSD H4 Analyzed
As we can see in the chart below, courtesy of Masterforex-V Academy, the bearish trend is still underway and doesn't seem to be set to go anywhere. The existing downward tendency has been going on since 1.3699, if to believe the given piece of the chart. This is the starting point for the 5-wave count. 4 waves are completed, wave 5 ( started from 1.3432) is still developing its way down. There are 3 completed sub-waves inside of wave 5. At this point, the currency pair is developing a bullish reaction from 1.3109. Until 1.3260, this can be sub-wave 4. If the price overcomes the level and the top of the descending MF sloping channel, this may well be a reversal or the end of the entire 5-wave count.
Still, the bearish scenario looks more probable at this point, given the economic reports coming from the Eurozone and the USA and some other aspects, including technicals.
