EUR/USD (1.4681) – Weekly Forecast

Weekly forecast levels: 1.4485/1.4790

Trend for the week – Neutral

Market Focus: Building Permits, Housing Starts, CPI, Core CPI, The rumours about the Fed interest rates politic.

Weekly Strategy: During the last business week the dollar lose against the euro after the confirmation by Bernanke that the politic with another interest rates correction down will continue. It is expecting the Fed to cut the interest rates with 50 bps on the next meeting in March. Although the news was known a week ago the confirmation in Bernanke words was using by the traders to sell dollars. In the coming week the pressure against the dollar will continue. As overall we expect the dollar weakness to continue but at the mid of the week to stop and reverse. The trading strategy is mainly based on technical analyses as for the moment the fundamental reports are not indicator for the intra day trading.

USD/JPY (107.79) – Weekly Forecast

Weekly forecast levels: 106.75/109.90

Trend for the week – Neutral/Upward

Market Focus: Speculation in high risky trading assets.

Weekly Strategy: The dollar not succeeds to keep the gains against the yen after the break of the resistance at 107.80. In the coming week in FS Team expect the dollar to continue to take advantage against the yen in test of the levels above 108. The key resistance is at 108.60, as the break above will signal for levels of 109.60/90. The trading strategy in the coming week is opening long positions, as buy on dip movements.