EUR/USD (1.4942)
European & US sessions forecast levels: 1.4625/1.5060
Trend Sessions: European: Neutral/Downward
US: Neutral
Market Focus: 8:30 AM PPI, Core PPI, 9:00 AM Net Long-Term TIC Flow, 9:15 AM Capacity Utilization, Industrial Production, 5:00 AM EU Trade Balance.
Daily Strategy: Bernanke signal to the markets that the interest rates may leave as low as 0.25% for longer period while the jobs market remains in worse situation for the last decades. These words were enough for the traders to continue with the trading close to 1.50. It seems that Bernanke do not want strong dollar. He talks for strong dollar but doing reverse. The technical reasons and some of the investor’s short positions help the dollar to keep at the levels below the key resistance of 1.5060. It is possible to see dollar recovery today as we recommend opening short positions.