Yesterday’s American trading session, the world’s most popular currency pair continued its way down from the local low of 1.2900. The US Dollar went on with its strengthening against other majors, including the common European currency, amid stable figures on the US industrial production. In particular, the PMI remained strong at 57,9 points. Any value above 50 indicates relative strength.
As a result, by the end of the American trading session, the currency pair managed to drop down to 1.2844. With that said, the currency pair is still trading within the scope of the 1.2838-1.2863 range. This range was created at the crossroads of today’s Asian and European trading sessions. So, these are the local high and low. This was followed by an economic report from Germany. In particular, the business climate in the Eurozone’s biggest economy seems to be worsening. The business climate index dropped from 104.7 points down to 106.3 points this month. It appears that the index dropped to the lowest level since April 2013. At the same time, the German index of business expectations decreased from 101.7 points down to 99.3 points.
Near-Term Prospects
The hourly chart of EURUSD is still showing us the same bearish tendency, Masterforex-V Academy reports. In particular, we can clearly see a downswing (1.2994-1.2815) followed by a recovery (1.2815-1.2900). At this point, the bullish move is still a reaction until proved otherwise. A break below the local low of 1.2815 will resume the downtrend. Otherwise, a break above 1.2900 will resume the bullish reaction.
