EUR/USD in summation

On the week, the USD and JPY made substantial losses against most majors amid positive data coming out of the US, suggesting recovery for the world’s biggest economy.  EUR/USD touched a two-week high before a report forecast to show sales of existing U.S. homes rose to the highest in 1&1/2 years.  In Asian trading the EUR/USD peaked at around 1.2983, its highest level since Jan 4.  In addition the euro has risen 2.3% since Jan 13.  Overall the currency market had a very quiet day during Asian session perhaps due to the winding down in readiness for the Lunar new year or that traders are waiting for news as Greece heads into a third day of talks with private creditors on a debt-swap plan.  In summation for the week, we have seen euro recover across the board on the back of short covering, technical retracement and stop losses.  That said market players are still quite comfortable with the thought that EUR/USD remains bearish as a trend due fundamental factors.  However in our opinion and with regards to risk/return ratio, the daily chart seems to indicate that the downward trend may resume on the break of 1.2930.

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