Dmitri Lysenko
The analytic team of Wells Fargo assumes that the Euro currency will keep depreciating. However the decline will be gradual. According to them, the eurozone recession and the ECB’s soft monetary policy will keep pressing the common currency. They expect EURUSD to decline down to 1.27 within 3 months while 1.20 will be reached within a year. Amid the recent roller coaster this decline looks fairly smooth.
Only a sharp increase in the pace of the eurozone’s economic growth or the softening of the US monetary policy can reverse the downtrend. However, these scenarios are hardly probable under present conditions.
According to the Department of Masterforex-V Trading System , EURUSD continues its downtrend. Of the price overcomes the closest level of support located at 1.3002,, it will probably keep declining down to 1.2973. The Fibonacci levels 1.2952/45, 1.2854 will be the next closest levels of support. 1.3119. The current downswing (wave C) will be completed when the price breaks above the MF sloping channel and pivot 1.3119.
Dmitri Lysenko
