FX forecast for May 25 – how long will the euro gain?

How long will the euro increase in value and when will we see a correction? – these are the questions that Financial Brains tries to answers at the start of the week. EUR/USD: The director of Financial Brains portal, Dr Sveatoslav Mihalache answered the first question this way – not endlessly. ”The trees do not grow up to the sky, while the technical indicators show a possible correction,” Mihalache said, quoting Jean-Claude Juncker, chairman of the Eurogroup forum of euro zone finance ministers, who said Friday that “further euro rise is not in line with fundamentals.” Last week, the European common currency gained 3.6% against the US dollar owing also to the growing pressure on the dollar last weekend following speculations that the U.S.’s AAA credit rating could decrease. The news that the North Korea conducted successfully a new nuclear test shook the stock exchanges. Therefore, the foreign investors started to sell euros and purchase dollars. After passing the resistance level of 1.3737, the EUR/USD pair hit 1.4050, the next resistance level standing at 1.4170. The support levels are 1.3830 and 1.3737. EUR/MDL: The currency exchange facilities in Moldova will trade the euro at 15.50 – 15.58 lei (bid) and 15.65 – 15.73 lei (ask). USD/MDL: The US dollar is balanced on the home market. Today, the rates for the dollar will be: 11.12 – 11.16 lei (bid) and 11.23 – 11.26 lei (ask). For further details, visit www.fb.md.