EUR/USD (1.2596)

European & US sessions forecast levels: 1.2475/1.2810

Trend Sessions: European: Neutral/Upward

US: Neutral

Market Focus: 8:30 AM Building Permits, Housing Starts, Export Prices ex-ag., Import Prices ex-oil, 9:15 Capacity Utilization, Industrial Production.

Daily Strategy: The dollar take advantage against the euro as the recession fears in the European banking system spread. The latest forecasts predict deeper recession in the Euro Zone. The traders prefer the stability of the dollar these days. Today is possible temporary recovery of the euro, but the overall tendency is for continue dollar gains. The current key support level is formed at 1.2562, as the break below will open the way for 1.2475. On the traders focus today is the latest report for US housing sector. The forecasts show that the bottom of new housing starts and building permits is not reached and may expect new low levels for the last month.