EUR Trading Outlook (13-02-2015)

EUR/USD A somewhat subdued European morning for EUR/USD suddenly came to life in early NY. The USD had been generally soft leading into the US data but the below f/c results sent the USD tumbling even faster. EUR/USD’s reaction was delayed a bit though as it couldn’t break 1.1355/60 res. A slight pullback was bought though and stops above that resistance were run. The 200-HMA was pierced and 1.1380 neared before another pullback below 1.1340 took hold. Again the dip was bought but this time more vigorously as US bond yield crumbled. Fierce buying took hold and the pair cleared the 10-DMA and pierced the 21-DMA. Real money sellers building short positions were noted sellers but they were no match for the momentum buying. The pair hit a 1.1423 high before any meaningful pullback was seen. The USD took back some losses late in NY’s afternoon and EUR/USD dipped towards 1.1395 late in the day. Traders now looks to EZ Q4 GDP reports and further news on Greece for their cues. A weak GDP likely puts bear pressure on the pair.