FX forecast for Jan 26

- [EUR/USD] Yesterday the euro tested, unsuccessfully, the $1.4220 level and has been declining since, currently trading at $1.4070, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. If the euro manages to break the support level which stands very close, at $1.4020, it is possible that we'll see the European currency drop to $1.3775. This would translate into lei at 17.20 – 17.30 for one euro. [USD/MDL] While in the first half of yesterday's trading session on the interbank market the demand for dollars was higher than the offer, the situation reversed by the end of the day. This balancing suggests that the dollar will trade within the same corridor as yesterday: 12.45 – 12.50 lei (bid) and 12.60 – 12.70 (ask). According to the Financial Brains, there is a strong sentiment among the general public that the dollar should rise against the leu, but that contradicts the reality, judging by the monetary aggregates and macroeconomic indicators in December. Therefore, the Financial Brains do not recommend buying dollars at a higher rate than 12.55 lei. However, if fluctuations occur during the week, it would be wise to sell dollars higher than 12.70 lei and buy them cheaper than 12.20 lei. [EUR/MDL] 17.54 – 17.60 lei (bid) and around 17.70 (ask). For further details visit www.fb.md or www.financialbrains.eu