Yuriy Ukazkin
Forex news, Euro rate. Real sector presents interesting data about economic condition of Eurozone. In the countries of the EU the sales of cars dropped by 1.8% in October 2011, in comparison to October 2010.
Germany and France have sold 0.4% more cars during January-October 2011. However, during the equal period this number has dropped by 4.5% in Britain and by 10.8% in Italy. All this proves that real sector in problematic countries has already felt the crisis.
Many players have started selling out the bonds of reliable European borrowers. Such actions are rather predictable, as for other European countries the size of Italian debt is not something that can be easily overcome.
The only solution can be printing money, but Germany is absolutely against it. The countries will lose less because of inflation, rather than because of the collapse of the bank system that can further lead to the collapse of the Eurozone. As a result, bonds in the countries of the EU have gone up, expecting sudden inflation. However, in such circumstances Euro is expected to drop.
As a result of lower Euro rate, short bear wave а(С)/С of Н4/Н8 level has been formed. If the down movement continues, according to the experts of Masterforex-V Trading System , wave с(С) will start being formed as soon as point 1.3428 is passed. 1.3405 and 1.3282 will provide strong support. Mid-term movement will change only if NK MF 1.4246/1.3811 and pivot MF are passed.
Yuriy Ukazkin
