EUR/USD (1.5675) – Weekly Forecast

Weekly forecast levels: 1.5480/1.5990

Trend for the week – Upward

Market Focus: Banks reactions about the weak dollar and the possible intervention, Fed interest rates decision, Industrial Production, Building Permits, Housing Starts.

Weekly Strategy: The records on the forex market will continue every day. It is expecting the dollar to fall to 1.60 during the coming business week. There are not fundamental events or some talks to stop the falling dollar. The traders prepare for ECB and Fed intervention to keep the dollar. The next step with the problems of US economy is the inflation. Still there is not inflation in USA but in the coming months the inflation in USA will rise. In the coming week the pressure against the dollar will remain. At the end of the week if the Fed and ECB not act, as needed the forecast is for levels close or even higher than 1.60.