The eurozone crisis keeps affecting global markets. The world’s major rating agencies ignore the fact that some European bond yields are growing. If there is a cut in France’s sovereign rating, it will seriously affect the eurozone’s financial system. French politicians say the ECB should provide the stability of the eurozone and its currency. Angela Merkel says the ECB cannot be in charge of the stabilization process.
The ECB could ease the tension through bond purchases, thus providing some time for implementing a range of reforms in the EU. However, Germany opposes it, which means we’ll most likely see the crisis escalating.
In the meantime, EURUSD keeps retracing in the form of a D3 wave. According to the Department of Masterforex-V Trading System , a FZR at 1.3421 will continue the downswing. In this case the price will find support around 1.3405/1.3393, and 1.3303/13275. There is no point in considering a change of trend until the price breaks the MF sloping channel 1.3811/1.4246 and the MF pivot 1.3810. If a series of upward FZRs ends up with a break of the MF pivot 1.4243, the currency pair may head for 1.4376.
