EUR Trading Outlook (12-09-2014)

EUR/USD Europe squeezed shorts a bit in their morning as they bounced the pair off the 1.2900 area towards 1.2940 before it pulled back near 1.2920 into NY’s open. The USD was soft in early NY and weakened further after jobless claims were worse than f/c. EUR/USD again lifted towards 1.2940. IT broke Europe’s high and cleared Asian offers sitting 1.2940/50 to make a 1.2952 high. No further gains could be made as more solid offering interest sat into 1.2960 as the market is firmly in sell rally mode. The USD mounted a comeback and EUR/USD slipped from the high. Pressure also came from BNP’s lowered year-end EUR/USD f/c to 1.2500 while also noting they have re-entered a short position to target 1.2500. A dip to 1.2920 saw a slight bounce & the pair sat just above 1.2930 late in the day. The pair continues to consolidate recent losses and this bodes well for shorts. The consolidation phase gives oversold techs a chance to unwind. The phase should resolve to the downside once complete. 1..2740 is the immediate target upon resumption of the down trend