Last week EURUSD was mostly rallying, thus hinting at positive sentiments. However, investors are focused on the situation around Greece. The conflict between Greece and its private lenders seems to be escalating while political disputes keep hindering the process of debt restructuring.
According to Olli Rehn, European Commissioner for Economic and Financial Affairs, Europe’s political parties should convince their Greek counterparts to fulfill their commitments. Otherwise, he says, there will be no chance of saving Greece. In March 2012 Greece will be obliged to pay off its bonds to the amount of 14.4B euro, which will be impossible without external help.
The rest of the eurozone looks quite confident. Experts assume that the Euro currency will probably be losing its value in Q1 2012, which will be followed by recovery.
In the meantime, EURUSD is in the 1.3076-1.2623 range formed by wave 5/A h16. The price keeps forming wave A/B of H12/16, which may turn out to be a reversal wave. According to the Department of Masterforex-V Trading System , the closest levels of resistance are 1.3006/3023 and 1.3076. A change of mid-term trend will become possible only if the price breaks and consolidates above the MF pivot 1.3072. On breaking below the local low at 1.2623, the downtrend will be continued in the form of wave C H16. The closest area of support is 1.2599/1.2571.
