EUR Trading Outlook (24-02-2015)

EUR/USD The pair couldn’t break free of Friday’s range. Europe pushed EUR/USD down to 1.1295 just ahead of NY’s open. The driver was EUR/JPY’s dive from near 135.50 towards 134.50. NY retested Europe’s low early on but once it became clear no further losses were possible some intra-day short covering took hold. The pair lifted above 1.1320. Weak US housing data then gave an added boost and the pair tested hourly resistance near 1.1365/70. Some gains were given back on Greece postponing its list of reforms for the Euro group until Tuesday morning. The 1.1320 area was tested but JPY weakness helped stall that dive. EUR/JPY bounced towards 135 in NY’s afternoon and this allowed EUR/USD to settle near 1.1335 late in the day. Traders now look to Tuesday morning’s Greek news and Fed Chief Yellen’s testimony to congress tomorrow in NY’s morning. Should Yellen keep a June hike on the table EUR/USD should get hit. We might then see key support in the 1.1270 area get taken out and the pair make a run for the 2015 low again.