The European Union, as a geopolitical formation united into a single territorial “zone” according to the Schengen Agreement, is mainly based on mutual “gentleman” confidence.
For example, France trusts Italy in terms of the security of mutual borders, and vice versa. However Italy is currently having a hard time dealing with a huge flow of refugees from North Africa. Yet the first thing France did was close the border with Italy to prevent the refugees from crossing it, which certainly aggravated the relations between the two countries. Eventually they have settled a dispute. But there are some consequences: Last Friday the Euro Commission introduced a new draft program implying temporary restoration of the national borders between the Schengen countries. Another “symptom” showing that there is no single EU institution that could effectively maintain the common security and political line is the fact that on the same Wednesday Poland and Sweden made a bilateral strategic agreement (some kind of a separate regional alliance).
The last “straw” that broke the “camel's back” of the Euro currency was the speech made by Jean-Claude Trichet. EURUSD eventually declined.
By now EURUSD has reached the 300% target of the Fibonacci extension created by the bearish wave C of H1 after the hidden wave B.
According to the Sub-department of Anticipatory Forecasting under the Department of studying Masterforex-V trading system , the mentioned wave C may be elongated after the correction on the small-scale timeframe is over. Despite the fact that there are still no signals confirming the reversal of the current downtrend, it is necessary to trace the perspectives of an upward correction of M15.
To define the vector of the forthcoming movement we apply the elements of the Anticipatory Forecasting System and other binary patterns by MF.
