Today’s trading hours have been mostly bullish. On September 23rd, by the end of the European trading session, the world’s most popular currency pair reached the key level of 1.2900. This is the intraday high.
The temporary strength shown by the common European currency today was mainly caused by mixed but mostly strong economic data from the Eurozone in general and Germany in particular.
Germany and the Eurozone’s PMI dropped from 51.4 and 50.3 down to 50.7 and 50.5 respectively.
The USA reported about retail sales dynamics shown by US major retailers. The annual rate increased from 3% up to 4.1% in August 2014 while the weekly index improved from -2.6% up to 0.1%. By the start of the American trading session, the price reached 1.2900. Later on, the price retraced back to 1.2873.
As for the near-term prospects of EURUSD, Masterforex-V Academy sees the following picture:
During the European trading session, the currency pair completed the bearish move between 1.2994 and 1.2815. The price initiated a recovery from 1.2815. At this point, this is a 3-wave count.
The 3rd wave of the bullish count is still incomplete and has already reached 176.4 % Fibo of the first wave. The current bullish move is defended by the MF sloping channel.
In order to resume the downtrend, the currency pair will have to break the 1.2844 pivot.
