FX forecast for Oct. 26

- [EUR/USD:] The week had barely begun when the euro dropped early this morning, then surged – to a new record high of $1.5060 – and then dropped again, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. The reason for these oscillations, according to him, was the article by a top analyst at the Chinese central bank saying the establishment should diversify its foreign currency reserves, consisting mostly of dollars, with injections of euros and yens. Immediately after the publishing, the euro hit the $1.5060 mark. The market somewhat cooled down moments later, after the analyst published a remark mentioning that was his personal opinion, and not of the bank. Currently the euro trades at around $1.5020. The first resistance level is situated at $1.5050/60, perforated this morning. Yet Sveatoslav Mihalache thinks that was a false break as the resistance level remains strong. The next resistance level stands at $1.5170. The nearest support level is situated at $1.4980, tested today before the publishing of the present forecast. Financial Brains consider that it will be retested in the course of the day. The next support levels stand at $1.4890 and $1,4830. [EUR/MDL:] 16.44 – 16.49 lei (bid) and 16.60 – 16.65 lei (ask). [USD/MDL:] 11.00 – 11.03 lei (ask) and 11.08 – 11.13 (ask). For further details visit www.fb.md