FX forecast for May 12

- [EUR/USD:] The traders’ optimism fueled by EU’s €750bn bailout package announced Monday was short-lived and, after a jump to $1.30 at the beginning of the week, we find today the euro again revolving around the $1.26 mark. The situation could change, in both directions, with the release of the European Union’s GDP today, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. If the GDP sees even the slightest rise, the euro will receive a new stimulus to seek to test the $1.30 level. Otherwise, or even if the GDP is shown to stagnate, the euro could today drop to the lows of this year, situated around the $1.25 mark. At the same time, technical indicators show the euro to be oversold at present, which portends a potential correction. The Financial Brains will buy today euros no lower than $1.2560/70, with a close stop-loss. Resistance levels: $1.2885 (strong); $1.2715 (intermediary). Support levels: $1.2610; $1.2570; $1.2515 (year’s low). [EUR/MDL:] Currency exchange facilities in Moldova today will buy euros at 15.73 – 15.77 lei. While ask rates of 15.95 – 15.98 lei are considered “the fair thing to display”, it is not excluded that ask rates will be higher. [USD/MDL:] Dollar transactions on the domestic market are conducted passively due to a low demand, which confirms the predicted downward trend to 12.40 – 12.45 lei. It is not advised to buy dollars higher than 12.48 – 12.50 lei. Predicted bid rates 12.47 – 12.50 lei; ask rates 12.56 – 12.58 lei. For further details visit www.fb.md or www.financialbrains.eu