EUR/USD (1.5412)

European & US sessions forecast levels: 1.5335/1.5505

Trend Sessions: European: Neutral

US: Neutral/Upward

Market Focus: 2:00 PM Treasury Budget, 3:00 AM Italian Industrial Production, 11:00 AM ECB President Trichet Speaks.

Daily Strategy: The dollar still searching direction after the mix fundamental data. The recoveries in Asian open today in spite the weaker US housing data is a temporary process. The interest rates comments that Fed is stop to cut the interest rates while ECB probably will raise the interest rates also is key factor for the forex market. We are predicting new upward movement above 1.55 soon. The main factor moving the dollar except the fundamental events is the price of the oil. The high fuel prices will accumulate strong inflation and slow growth. The today’s forecast is slowly recovery of the dollar during the European session and movement upward in US and Asian session.