Low inflation in the Euro Zone will allow ECB to cut interest rates:

News:
EUR/USD (1.3087)
European & US sessions forecast levels: 1.2970/1.3230
Trend Sessions: European: Neutral/Downward
US: Neutral/Downward
Market Focus: 9:55 AM Michigan Sentiment-Prel, 5:00 AM EU Trade balance.
Daily Strategy: The inflation in the Euro Zone down to 0.6% that send positive signal to European Central Bank to act with the interest rates cut. The dollar breaks below the key support of 1.3090 during the Asian session. The recovery of the dollar will continue. The other key event today the Michigan Sentiment report may signal that the recession pressure low and the world’s largest economy will out of the recession faster than Europe. The trading strategy today is opening short positions as sell on high movement.
Forex Forecast by FS Team