EUR/USD (1.4497) â€“ Weekly Forecast
Weekly forecast levels: 1.4365/1.4615
Trend for the week â€“ Downward/Neutral
Market Focus: US Retail Sales, Trade Balance, Industrial Production, Michigan Sentiment-Prel.
Weekly Strategy: First is necessary break below 1.4415 to continue with the dollar recovery. But the key support is formed at 1.4365. This is very important support level, as the break below will open the trading for levels down to 1.40. Except these key technical levels the market focus will come over the speculations when the Fed will cut the interest rates again and with how much. The latest forecasts show that Fed will cut the interest rates with new 50 bps in the coming 3-4 months and that will be the last correction in downward direction. At the same time the traders expect ECB to start with the interest rates correction and the time when ECB have to do it closer. In the coming week FS Team strategy is opening short positions as sell on high movement.