Yesterday Moody’s downgraded the long-term rating of Portugal ’s T-bonds by 4 grades at once - from Ваа1 down to Ва2, with a negative forecast. The common European currency instantly lost 80 pts against the US Dollar.
The mentioned international rating service assumes that the Portuguese government may fail to reduce budget spending, which in its turn will force Portugal to ask for another loan. The short-term credit rating of the Portuguese government was also downgraded from Prime-2 down to Not-Prime.
FOREX.
According to the SRP Sub-department under the Department of Masterforex-V trading system , EURUSD keeps forming the downward wave of H1, which well may turn into wave A or 1 against the current uptrend. At the moment we can see the ML (main line) touching the S/R (support/resistance) line , which is some kind of the “moment of truth”. If these lines intersect, wave A H1 will be over. If there is a rebound the price will keep working out the RP of H1 (1.4495).
Timeframe H4 confirms that H1 has a potentially reversal wave: the ML crossed the S/R and FZ (flat zone) lines, which means that the wave level of the mentioned swing is fairly high.
To define the vector of the forthcoming movement we apply the SRP elements and other binary patterns by MF.
