The common European currency keeps on staying under the bears' pressure. At the start of today's European trading session, the currency pair (EURUSD) continued its way down to new local lows. Yesterday, it overcame the previous low of 1.2888 to find the local bottom at 1.2860.
The downward pressure on the Euro increased after the ECB decided to cut the key interest rate from 0,15% down to 0,05% last week. On top of that, the recent economic figures coming from the Eurozone, including Germany (its major economy), keep on disappointing traders and investors, which is definitely not a good sign for the common currency in its fight against the US Dollar.
The overall economic tone in the Eurozone cannot be called reassuring. Therefore, the weakness of he common currency continues even though Germany published a strong trade balance report yesterday. In particular, the external trade surplus of the Eurozone's biggest and strongest economy expanded from 16.4 bn euros up to 22.2 bn euros during the reporting period. At the same time, economists had anticipated an increase up to 16.8 bn. Therefore, the figures turned out to be much stronger than expected.
Still, the common currency only reacted with a decline down to 1.2956 yesterday, to see further lows around 1.2880 amid lower investor confidence in the potential of the Eurozone economy. At the same time, Portugal 's GDP growth slowed down from 0,6% down to 0,3% in Q2 2014.
EURUSD
According to the trading experts and members of Masterforex-V Academy, who conducted comprehensive analysis of the H4 chart of EURUSD, the current state of affairs looks as follows:
The mentioned chart is currently showing as a pretty strong bearish trend, thereby indicating the ovral strength of the US Dollar against other majors. A new 5-wave count of the bearish trend has been going down from 1.3432. the 5th wave of the move has been underway since 1.3135. This is an elongated wave.
The closest levels of resistance are 1.2988 and the top of the descending MF pivot. Once the price succeeds in breaking and consolidating above them, we are going to see the end of the bearish wave. Still, the bearish scenario looks more probable. The closest level of support is located at 1.2845.
