EUR Trading Outlook (06-02-2015)

EUR/USD The pair saw short covering in Europe test the 1.1450/60 resistance zone but be unable to break it. The ensuing dip had it near 1.1425 into NY’s open. Early action saw the slide deepen towards 1.1390 after weekly jobless claims came in much better than f/c. The dip was bought though and a steady ascent towards Europe’s high took hold. The zone held several tests but the dips became more and more shallow. Headlines from Greek’s CB Gov Stournaras noted the ECB collateral decision can be taken back if a deal is reached with EU partners buoyed risk sentiment. JPY weakened drastically and EUR/JPY rallied near 135.15. EUR/USD went along for the ride and ran stops above 1.1460. A quick spike took hold and 1.1499 was hit. Offers at hourly resistance and into the 21-DMA (1.1510) capped the gains. The pair slid a bit late in the day and sat just above 1.1475 towards the close. Traders now wait for the US January jobs report. A weak result likely sees EUR/USD ending its consolidation phase and break higher. We’re then likely to see a quick run to 1.1650/80 where the Jan 22 & 21 highs sit.