Wed, 25 May 2011 10:54:00 +0200

Forex: Dollar expected to appreciate in H2 - UFX

FXstreet.com (Barcelona) - Dollar primary bearish trend might be about to end according to the UBS FX Research Team Recent Dollar strength, as the recent recovery is expected to extend through the second half of the year, favoured by the end of Fed's QE programme, and by the weak Euro, sufferinng by ongoing debt concerns in the EU.

The Dollar, pressured during the last 12 months by Fed's Quantitative Easing progremme, -with other banks, like ECB, having already hiked rates, is likely to be boosted from June, according to the UBS FX Research Team,
when the Federal Reserve's bond purchasing programme ends.

Furthermore, increasing uncertainty in the EU, unable to approve a resolution for a new rescue package for debt laden Greece, will continue weigh on the EUR/USD, which according to the UBS FX Research Team is expected to depreciate from the current 1.40/1.50 range, to the 1.30/1.40 range in the second half of the year.

Technical Analysis (2011-05-25 08:30 GMT)
EUR/USD 1.4057/1.406 - O: 1.4338 H: 1.4346 L: 1.4329 C: 1.4331
Trend	R3: 1.4126
	R2: 1.4091
	R1: 1.4056
	S1: 1.3975
	S2: 1.4010
	S3: 1.4045