On Oct 28th there appeared rumors that China would most likely refuse to participate in the eurozone bailout. Most European governments started reducing the budget spending.
For example, Nicolas Sarkozy announced 6-8 billion cuts in order to make up for the economic slowdown. In 2011 the French GDP is expected to grow only by 1%. He underlined that spending cuts and deficit reduction should be the primary goals against the background of a potential cut in the sovereign rating of France.
On Friday EURSUD was moving in a range, thus forming wave 4/B. According to the Department of Masterforex-V Trading System , if there is a further rally and an upward FZR at 1.4246, the currency pair will start wave 5/A H8 with the target at 1.4382. Otherwise, in order to reverse the trend EURUSD will have to break below the 1.3800 and come out of the MF sloping channel 1.3656/1.3798 (as shown below):
