EUR Trading Outlook (11-08-2014)

EUR/USD The sour risk brought on by the US air strike news couldn’t gain traction in Europe’s morning. Right out of the gate the pair lifted from below 1.3360 & hit 1.3408. EUR/USD dipped back below 1.3380 & sat sub-200-HMA into NY’s open. Risk sentiment improved further as equity markets were set to open higher & JPY weakened further. EUR/USD held near 1.3395 in early NY but short covering by bears frustrated that Draghi’s jawboning failed to sustain a drop ignited a run on stops above 1.3410. The run quickly hit a 1.3433 high. Aiding the lift was EUR/JPY’s break of 136.65/70 on it’s way to a 136.89 high. EUR/USD pulled back a bit from its high but reports that Russian military drills near Ukraine were over aided to keep the pair solidly in the green on the day. The pair sat just above 1.3410 late in the day. Techs suggest shorts might get squeezed further. Daily RSI is biased up & long lower wicks on the last two weekly candles suggests bulls are putting up a fight. The lift may resume early next week but EZ July CPI & German Q2 GDP data may stall the lift if they come in below estimates.