Today’s European trading session was dominated by the bears. The currency pair started another downswing from 1.2768 at the beginning of the trading session. As the result of this move, the currency pair managed to go down to the local low of 1.2696. On top of that, this is a new 2-year low!
Market Leader reports that the current weakness of the common currency against its American counterpart is taking place amid mixed economic figures from the Eurozone (they were revealed earlier today).
For instance, the annual Spanish index of import prices declined from -0.5% down to -0.6% in August against the analyst forecast of -0.%. At the same time, Italy’s core inflation index remained stable at 1,1%. At the same time, the Eurozone’s M3 money supply boosted from 1,8% up to 2% while analysts had anticipated 1,9%.
Today’s American trading session is about to bring us some news on the US labor market.
The near-term prospects of EURUSD as seen by Masterforex-V Academy
The trading experts from Masterforex-V Academy report that the situation in the H1 chart of EURUSD indicates a strong bearish trend, which is underway from 1.2994. This is the starting point of the 5th wave of the mid-term downtrend. The current move is a 3-wave count at this point. The 3rd sub-wave of the move is going down from 1.2900. So, far it has reached 161.8% Fibo of wave 1 - 1.2994-1.2815.
At this point, there are no reasons to expect the end of the bearish move. It is still underway and a further downswing is likely to occur.
