Tonight Moody’s Investors Service downgraded the sovereign ratings of Italy, Spain and Malta down to A3, Slovenia and Slovakia down to A2, with negative forecasts. Australia, France and the UK are now under the threat of losing their Aaa ratings. This is how the rating agency treats their ability to withstand the escalating economic problems around the world.
Since early February EURUSD has been flattish most of the time, thus staying in a H1-H4 price range. The currency pair looks exhausted and cannot continue its rally. Any considerable downswing may reverse the trend. According to the SRP Department of , there is a bearish wave being formed on H4. It well may turn into a reversal downswing (wave A).
