EUR Trading Outlook (08-12-2014)

EUR/USD The pair saw some bear pressure applied in Europe’s morning. It slipped from near 1.2385 to 1.2346 before bouncing a bit into NY’s open. The pair was just above 1.2350 as NY got going and sat just below 1.2370 into the US jobs data. The NFP had a solid beat as did average hourly earnings. This prompted the mkt to buy USD as it gets the Fed one step closer to rate lift-off which many expect in the first half of 2015. EUR/USD dived as yield spreads went further in USD’s favor. The pair erased all the post-ECB based gains and hit a new trend low of 1.2271. Action quickly settled though and the pair ranged between the day’s low and 1.2309. The pair settled the day closer to the low though. With the pair ending the week near its low, it seems only a matter of when and not if the 1.2240/55 support zone is cleared. Once that support breaks the pair has little in support until the July 20102 low.