George Soros says that the Euro zone is in triple crisis: the currency (major) crisis, the bank one and the crisis of sovereign bonds. In his interview given to the Financial Times Mr. Soros explains that at the moment the Euro zone was created it was expected that the new formation would reduce the economic and financial gap between its member countries. However it produced the opposite effect.
The current Euro zone is based on the 2-component economic system implying that there are countries with stable trade surplus (Germany, France) and some lagging peripheral countries. The common European interests often contradict the national interests.
George Soros assumes that it is necessary to take two major steps to improve the situation:
· To eliminate the weak banks and to increase the capital of the strong banks thus making the common banking system healthier.
· To create special conditions for attracting private capital by the Euro-zone countries through issuing Eurobonds.
No stabilization will be possible without these steps.
In the meantime, EURUSD has recently suspended the rally.
According to the Sub-department of Anticipatory Forecasting under the Department of studying Masterforex-V trading system , the current pullback of level H1 against the uptrend may well be conditioned by the fact that on Tuesday the currency pair reached the target at 1.4242. The downward reversal point of H1 with weak potential is already formed, the workout of which has just been suspended around the level of 138.2%, which corresponds to one of the minimal levels. If the downward intraday movement continues the price may form either wave 4 of h1 or wave A against the major trend. 1.4136 (the reversal point) will act as a hint.
To define the vector of the forthcoming movement of EURUSD we apply the elements of the Anticipatory Forecasting System and other binary patterns by Masterforex-V.
