13, May 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The euro has not been able to gain a foothold above the resistance level in the area of 1.3200, which was followed by a technical correction, and the EURUSD hit 1.3000 1.3007. The level 1.3000 is a psychologically important and we believe that traders will start buying from it when the pair grows again.

If the level is passed, then the pair falls to the level 1.2939.

In general, the overall situation in the EU remains very difficult as the unemployment rate in the South continues to grow.

Spain is the second country with a bad economy after Greece and there unemployment figure continues to rise, reaching a new peak at 27.2% this year. It is estimated that about one hundred thousand people lose their jobs every month in Spain.

The situation is not better in France, where the unemployment rate also continues to grow. Young people aged between 16 and 30 years old continue to immigrate to more developed countries in search of better working conditions that adversely affect the economies of the EU countries.

The European Central Bank interest rate cut by trying to revive the level of business activity in the EU, but the economy is so weak, and the level of economic development among the countries are so different that at the moment of sustainable growth or change of trend too early to say - EU poised on the brink of survival.