EUR Trading Outlook (20-11-2014)

EUR/USD Modest short covering was the theme in Europe’s morning and early NY. EUR was bought vs many of the crosses with AUD,NZD, CAD and JPY the notable standouts. This saw EUR/USD lift from near 1.2410/15 towards 1.2450 before it slipped back near 1.2530 into NY’s open. Early NY saw shorts cover more as soft US housing data dented the USD’s lift while US yields slipped a bit. Stops above 1.2550 were hit and1.2571 touched before the pair pulled back to hourly support near 1.2520. The dip was bought as EUR/JPY bounced off intra-day support near 147.45 and EUR/CHF rallied after the latest Swiss gold referendum poll showed 47% are opposed. 1.2565 was neared as the FOMC minutes were released. Initial market reaction was deemed dovish and the USD got hit. EUR/USD spiked up to 1.2602 but the gains were quickly given back as USD/JPY rallied above 118.00 and US bond yields rallied. Hourly support near 1.2520 was threatened again but it held. Little bounce was seen and the pair sat just above the support late in the day.