The 1.2546 level has recently become a new local low of the day. The rice reached the mentioned price low during the European trading session.
Over the course of the first part of the trading day, the common currency kept on going down after the recent statement made by the FOMC. Still, the immediate response to the news was represented by a price decline in the market of EURUSD down to 1.2770, which corresponded to the strengthening of the US Dollar.
It should be noted that the common currency kept on going down in value against the US Dollar for the most part of the trading day despite the positive economic figures coming from the Eurozone coupled with less promising data from the USA. Later on, the currency pair started recovering and finally reached 1.2546. At the second part of the American trading session, the currency pair recovered up to 1.2631.
EURUSD
According to Masterforex-V Academy, there is a bullish tendency going on from the local low of 1.2546. This is a reaction to the bearish move - 1.2770-1.2546. The retracement is currently equal to 38.2% Fibo.
At this point, the bearish move most likely represent wave 1 inside wave 3 of the bearish count started at 1.2885. On breaking the 1.2546 low, the price may well continue its way down within the scope of the 3rd wave. With that said, the bullish reaction against the mentioned move holds true only if the price fails to break the descending MF sloping channel. Otherwise, the price will reverse the trend.
