Serj Panchuk
European banks are concerned about the situation around bonds issued by some eurozone members. According to UniCredit, an Italian bank group, it is expected to attract extra €7.5B in Q1 2012. UniCredit’s net loss in Q3 2012 was equal to €1.2B.
In Dec 2011 the bank group is going to hold a meeting of shareholders to discuss the plan of attracting the mentioned extra capital. Specifically, UniCredit is planning to emit a certain amount of common shares in early 2012. Moreover, the bank group decided to abstain from paying dividends in 2011and to arrange job cuts by 2015. The decision came as a part of a strategic plan, which is to be implemented until 2015. Such a state of affairs doesn’t look promising. Probably, in the near future some other European banks will also have to allocate funds to combat the crisis.
In the meantime, EURUSD is staying in the D1 range 1.4246/1.3483. it has already formed wave A/B of H1/D1. The Department of Masterforex-V Trading System offers the following scenarios:
If there is a FZR at 1.3483, the downtrend will be continued in the form of wave A(C )/C of D1, with the closest support around 1.3406.. Otherwise, if there is a FZR at 1.3811, there well may be a rally. In this case the price is expected to encounter resistance at 1.3936.
Serj Panchuk
