Nataly Kambur
The eurozone’s economic stats are contradictory. That is why investors cannot treat the common currency as a safe asset. Germany’s manufacturing production report for November escalated the worries about the possibility of a double-dip recession in the world’s major economies in 2012. The prolonged depreciation of Euro accounts for Germany’s modest balance-of-trade surplus (+2.5% in Dec).
On the other hand, it is necessary to mention that the demand for low-priced high-quality products has increased around the world. At the same time, a weak Euro keeps contributing to the eurozone’s export growth.
In the meantime, EURUSD is retracing against wave C inside the “Hound of the Baskervilles” pattern by Elder/MF. According to the Department of Masterforex-V Trading System , in order to continue the downtrend, EURUSD will have to break below the local low at 1.2663. The next strong level of support is located at 1.2571. A change of trend can be considered only after the price breaks above the MF sloping channel 1.3197/1.3072 and the MF pivot 1.3067 (as shown below):
Nataly Kambur
