EUR Trading Outlook (29-08-2014)

EUR/USD Europe tried squeezing shorts late in their morning. The squeeze managed to just barely pierce recent daily highs as it hit 1.3220. The lift was quickly reversed on reports of increased tensions with Ukraine & Russia. The pair quickly dived towards 1.3170. When the initial Ukraine/Russia headline was tempered a bit the pair bounced slightly. German HICP came in as expected and little market reaction was seen. The US GDP and claims data were solid and further increased the view that the US econ is fairing better than the EZ. EUR/USD went on to make a 1.3159 low but 1.3150 barrier protective bids and profit taking by shorts halted the slide. A steady lift from the lows saw the pair near 1.3185 late in the day. traders now look to the EZ CPI for their next cue. Bears need a below f/c result to have a chance at breaking the barrier. If the barrier is cleared stops below will be hit and a quick move down to 1.3100 is due.