Europoliticians create a single "megaregulator" - 19.10.2012

According to the latest reports from the summit of EU leaders, politicians have made progress in the issue of a single banking regulation within Eurozone. However, as we mentioned before, the lack of solutions for the financial stability pressing problem of Spain and Greece put pressure on risk assets. European stock indicators decreased by more than 0.5%, while euro has been losing about 80 points over the past two sessions. The signal to reduction in EUR / USD was the "head and shoulders" reversal pattern. Moreover, if the pair does not fall below 1.2990, it is reasonable to expect the updates from previous peaks - 1.3138 and 1.3170. This is shown by the wave analysis of the last growth segment.

EUR/USD, 30-Minutes chart

The inflation data from Canada showed an unexpected decline of both general and core consumer price indexes to 0.2% m/m. The annual CPI also fell to 1.2% vs. 1.3% forecast. As a result, the CAD continued declination vs. the U.S. dollar. The pair is trying to hang above significant local resistance.