Forex news, Euro rate. Since the beginning of the year Euro keeps falling against dollar, which is not surprising, as European debt situation keeps tense. At the beginning of January international agency Standard and Poor's has lowered investors’ sentiment by having lowered the rating of nine countries of Eurozone. Greek issues, which seemed to have become obscure, reemerge. And although market has had rather calm reaction to recent events, experts do not give bright prospects.
According to Nobel Prize winner Joseph Stiglitz, Europe is on the verge of serious economic decline, and austerity programs do not resolve the crisis, but exacerbate it.
Societe Generale analytics, in their turn, claim that the policy of ECB has changed drastically. This is connected with the election of new head – Mario Draghi, who vigorously cuts rates and floods the system with huge liquidity. Experts suppose that such policy, followed by further economic decline, will put European currency under great pressure. According to them, 1.15-1.20 will be the most realistic points at the middle of the year.
Euro rate is traded within the flat zone of 5/А wave of Н16 wave level, at the same time forming wave А/В of Н8/16 level, as stated by the experts of Masterforex-V Trading System . The flat ranges from 1.3076 to 1.2623. If falling trend continues and local minimum 1.2623 is passed, Elder’s Hound/MF will start and bearish trend will continue by wave С of Н16 level. The strongest support on its way will be provided by range 1.2599/1.2571. Mid-term trend may change when pivot 1.2877 is passed, and the trend sets over it. The nearest resistance on the way up will be provided by points 1.2921 and 1.2969.
