EUR Trading Outlook (15-08-2014)

EUR/USD Europe bought EUR/USD right out of the gate as the pair sat just below 1.3350. The lift had the pair near 1.3380 into NY’s open. The higher than forecast jobless claims data sent US yields lower and narrow yield spreads. The USD went offered across the board and EUR/USD hit a 1.3407 high. Offers ahead of the 21-DMA and Asian sellers near 1.3410 prevented further gains. US bond yields remained heavy but the USD managed to bounce back from its NY lows. EUR/USD slid and gave up all the gains made in early NY. The slide persisted into the afternoon and the pair sat just above 1.3665 late in the day. The pair continues is recent consolidation above 1.3295/1.3325 support. This should encourage bears as consolidation typically resolves in the direction from which the phase was entered. Most of Europe is on holiday tomorrow so traders look to UK GDP and US data for directional cues. A break of 1.3295 opens the door to the September 2013 low near 1.3100.