EUR Trading Outlook (19-09-2014)

EUR/USD A healthy bounce off Asia’s low was initially added to in Europe. EUR/USD lifted to 1.2909 but was swatted down on a combination of a weak take up for the initial TLTRO and a L’Opinion report that Moody’s is set to cut France to AA2 from AA1 on Friday. The pair dived down below 1.2870 before rebounding near 1.2885 into NY’s open. NY initially saw bears in control as well below jobless claims trumped weaker housing data. US yields and the USD rallied nicely. EUR/USD dipped to 1.2857. Yields couldn’t maintain the rally though and the US 2 yr gave up all the day’s gains after failing to clear 0.60%. It ended up putting in a bearish shooting star for the day. EUR/USD rallied from the NY low, pierced the 200-HMA & hit a 1.2928 high. A late day USD lift saw a slight pullback & the pair sat near 1.2915 late in the day. There is little major econ data overnight but traders will look to the Scottish vote for EUR/GBP impacts on EUR. Technically EUR/USD looks like it can squeeze higher as daily RSI diverges on the new lows & long lower wicks are in place on the last two weekly candles