Herman Van Rompuy: European Union will not survive if…

Market Leader informed

Herman Van Rompuy, European Commission president, said in a speech in Brussels before the euro zone finance ministers meeting that the European Union will not be able to survive if it fails to overcome the crisis that is currently plaguing the area.

“We all have to work together in order to survive with the euro zone, because if we don't survive with the euro zone we will not survive with the European Union…” he said in his speech. “But I'm very confident we will overcome this…” he added.

6 month ago only Greece was the focus of concerns and got over $100B from numerous international financial institutions to solve its debt problem. But last Monday it was Ireland that asked the EU for help. Yet Romania (another member of the EU) is currently facing a major economic and political crisis, which is rapidly turning into a “revolutionary situation”.

Moreover, mass media around the world say that Portugal and Spain experience huge budget deficit as well.

What is going on with the EUR currency rate against the background of the growing concerns about the EU and its problems?

EUR keeps losing its ground, experts from the Department of studying Masterforex-V TS say, for both technical and fundamental reasons:

·         The full-grown downward FZR is broken through (tech reason)

·         Investors keep rapidly taking their profits from EUR deals and change EUR for trading other currencies (fundamental reason).

EURUSD has already completed bullish wave A of Weekly level (1.1864–1.4281).

At the moment the price is shaping correctional wave B. There is a possibility of going for wave C. If the price comes out of the MF sloping channel and breaks through the defensive MF pivot, the correctional wave B will be canceled, which will lead to an increase in the wave level of the movement.

 

 

 

 

Lines of support and resistance:

1.4410 = 76,4%

1.42915 = MF pivot

The current price is 1.3501

1.3449 = 50%

1.2632 = MF pivot

 

 

 

 

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