EUR Trading Outlook (29-07-2014)

EUR/USD NY saw tight ranges carry over form the overnight session. The pair did have a tint of short covering added to it as specs lightened up ahead of big event and data risk due later in the week. Short covering in NY saw the pair trade from 1.3430 to a high of 1.3444. the long-term trend remains bearish but further short covering may persist as the upcoming Fed meeting is not expected to rattle expectations too much. Being that there is only an accompanying statement released at the decision and no direct Yellen comments traders aren’t expecting too much form the Fed. Most traders believe the Fed won’t give any hawkish tips and this could aid further short covering into the meeting. The US GDP, ADP and NFP data will get more focus. Should the results be favorable for the US econ, bond yields should lift and EUR/USD’s slide should resume. It’s likely the 200-Week MA will be cleared and the pair may make a run to sub-1.3300 levels into the weekend.