Ivan Zhigalov
Jose Manuel Barroso, President of the European Commission, and Olli Rehn, European Commissioner for Economic and Financial Affairs, published a joint communiqué on the results of the meeting between Nilkolas Sarkozy and Agela Merkel. The statement goes: "The proposals made today by President Sarkozy and Chancellor Merkel are a welcome step forward in our common efforts to strengthen the governance of the euro area. The challenges we are facing have made even clearer that a shared currency implies shared responsibility and demands closer coordination of economic policies".
Mr. Barroso and Mr. Rehn assume that "a regular format and frequency for the euro area summits, with a permanent chair, contributes to a more stable and stronger political leadership."
The general impression is that instead of instant economic steps they made some long-term political decisions.
FOREX.
EURUSD still hasn’t finished wave C H1 (an upswing). According to the SRP Sub-department under the Department of Masterforex-V trading system , the bearish retracement that will follow the upswing may well turn out to be the 4th sub-wave of wave C H1 if the main line in the flat zone of the AO_Zotik indicator is broken.
Consequently, after sub-wave C inside the downward retracement is over, there will probably be another rally up to the area of 1.4496 - 1.4621.
The alternative scenario (the grey lines) implies the development of a hidden wave – wave B M15. In this case, EURUSD will update the local high and then will make a rapid downswing - wave C M15. If the ML doesn’t break above the S/R line while updating the high, this will be a confirmation sign.
To define the vector of the forthcoming movement we apply the SRP elements and other binary patterns by MF.
Ivan Zhigalov
