EUR Trading Outlook (24-07-2014)

EUR/USD The pair held near its new trend low for most of NY and Europe. Bids ahead of the 1.3450 barrier and a solid bounce in EUR/GBP prevented bears from pushing further. EUR sales vs. the commodity currencies kept what meager EUR/USD rallies there were to a high of 1.3474. Late in the day the pair sat just above the day’s low as the market’s focus turns to EZ July PMIs tomorrow. Particular attention is likely to be put on Germany as the market looks to see the sanctions imposed on Russia have negatively affected one of the EZ’s core economies. Should the PMIs disappoint, the 1.3450 barrier is likely to be cleared and stop below it run. Bears then will push towards more barriers reported at 1.3400. Longer-term bears are targeting sub-1.3300 levels for now.