Forex news, Euro rate. European Central Bank currently has a real possibility to disburse loans to the countries of Eurozone, including its largest members. Such resources can become available in case of support by International Monetary Fund.
A step in this direction can be a way to evade the law, as ECB is forbidden to directly disburse loans to problem countries. Such variant was considered by representatives of currency block and fund.
Majority of European politicians are inclined to think that support from European Central Bank will help them to win time in order to hold urgent reforms inside their countries. They suppose that resources of financial regulator can stop the budget debt crisis and prevent it from spreading to other European Union countries, such as Italy and France. However, according to economists, only ECB can guarantee stability at financial markets. Moreover, analytics cast doubt on the decision to increase lending capacity of European Financial Stability Facility to 1 trn.
Thus, the norms of EU can be evaded, as ECB will be a lender of last resort. Consequently, it will print Euro in the amount needed, which will certainly influence the rate of European currency.
According to the experts of Masterforex-V Trading System , Euro rate is traded within the flat zone of wave а(С)/С of D1 wave level, bordering on 1.3811 and 1.3421. The bottom line of 1.3421 and the corresponding FZR are to be passed for the upward wave c(С) to continue. In this case strong support is provided by 1.3405/1.3393 range, as well as 1.3303/13275. Wave b(С) will reverse if NK MF 1.3811/1.4246 is left behind. If upswing continues and pivot MF 1.3810 is passed, the mid-term trend will change. As soon as FZR increases and passes pivot MF 1.4243, long-term trend targeting at 1.4376 will be worth considering.
