US President Barack Obama had a meeting with Speaker of the House John Boehner and congressional leaders. They failed to come to an agreement, though Obama issued the order putting the reductions into effect - $85 bln worth for the remaining 7 months of the current fiscal year (until September 30).

The markets responded neutrally, even there were signs of optimism in it. Friday may be considered as a classical example of financial markets performance; the assets are growing amid money despite the economy. There is a lot of money on the market against $85 bln cuts. By means of foreign loans the Treasury has injected $2050 billion into the market for two months. That is QE3 in action.

Today at 12:00 GMT+4 Unemployment Change in February in Spain is published. It is expected to be 77.5K against 132.1K.

We consider that the market will be in a sideways channel in the range 250 points from the current levels for a month and one and a half until the situation is not clear. In order to define the attitude of the major market participants, one should wait for the closure of the US trading session. We can consider at the moment that in case the area of resistance 1.3050/60 (on the H4 chart of the level of Fibonacci 261.8% and on the daily chart the level of conjunction of the Fibonacci level 61.8% with the trendline) is broken, the level of 1.3113 may be reached, followed by 1.3168. If the price consolidates under the Friday’s low 1.2966, the level of 314% - 1.2923 may be reached.