The technical corrections on the forex market cont

In the period when there are not key economic events the most important for the traders is the technical trading together with the speculations about the Fed and ECB interest rates politic. Most of the traders use the very good bottom of EURUSD @ 1.4365 and open long positions in high volumes expecting new high levels. Although that the situation in the European Union is not clear with forecast for slow down of economic growth together with cutting of the key benchmark interest rates. At the same time the fears of U.S. recession come into Europe and most of the economists predict worse situation in the Euro Zone. It is widely expecting the Fed to cut the interest rates at the end of January with 50 to 75 bps while ECB to cut the interest rates with 50 bps to the end of 2008. In predicts that ECB have to cut the interest rates more than 50 bps to the end of 2008, while for the Fed this interest rates correction have to be the last of the serial correction by the last couple of months.

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