EUR Trading Outlook (28-04-2015)

EUR/USD
• Pair pressured in Europe morning on ongoing Greek concerns & USD rally
• Early NY tests sub-1.0820, turns as USD slides & Greek fears abate a bit
• Sharp USD drop & US yield slip aid EUR/USD spike, stops >1.0900 hit
• 76.4 Fib of 1.1036-1.0521 pierced & 55-DMA neared as 1.0927 high hit
• Late day slip on USD bounce sees sub-1.0890 towards Ny close
• Techs & spreads support gains; If Fed dovish March high might break

USD/JPY
• Yen weaker v all majors save for the CHF; latter sold on Varoufakis news
• High betas beating the low beta CCYs, even GBP/JPY up pre UK election
• EUR/JPY eyes Cloud base at 130.43; firm above Kijun at 128.80
• US-Japan defense pact expanded & more formalized today
• Soft 2nd-tier US data & 50% Fibo at 119.43 cap USD/JPY bounce
• Cloud base at 118.94 key on close.

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