The Cypriot parliament rejected an international bailout deal that would have imposed a one-off tax on bank deposits. Talks are under way to try to agree an alternative plan. Apparently, the decision will be made on Friday. At the moment the progressive scale has been developing. Cyprus’ banks are closed approximately till March 26.
ZEW Survey (Economic Sentiment) in the Euro area in March fell from 33.4 to 42.4, but Industrial Production in Italy in January rose 0.8% against forecast for a 0.3% drop. US Building permits accounted for 0.95 million against forecast for 0.93 million, US Housing starts was in line with forecast, 0.92 million y-o-y. Due to decision on one-off tax has not been taken and strong macroeconomic data, the markets are calming, the investors prepare to lose money. We suppose if the tax burden is introduced, there will not be a surge of panic. Today at 22:00 GMT+4 FOMC Interest Rate Announcement takes place, at 22:30 GMT+4 Ben Bernanke is to deliver his speech.
From the technical point of view, if 1.2840, the support of trendline on the H4 is reached, then target at 1.2800, 361.8% of Fibonacci opens. If the resistance is reached, the local target of the Fibonacci level 314% on the H4 1.2919 opens. When the price consolidates under the low of March 6, 1.2964, it will force the price to close the gap with the nearest resistance 1.3065 on the daily chart.