European market wrap: EUR/USD passes $1.20

With the dollar weakness comes other FX strength and nowhere is this more obvious than on the EUR/USD trade where the Euro has stormed across the $1.20 line.
As explained here the price action has been held up as it makes ground outside the upper line of the Bollinger band. Waiting for the price action to drop back into the Bollinger area before looking at setting up a long trade again.
What is causing the trade? Some analysts are being asked if there is a safe haven play here? As Jeremy explains the Euro has been a safe haven trade before, but is it taking that mantel again now? In as much as traders are short dollars there is a case to put money into euros. However this only serves to cool what little economic heat there is in the Eurozone and so will have a longer term negative effect on the Euro, but at the moment it seems to wants to continue to gain ground.
Jeremy also looks at the upcoming data this week that may give a trading opportunity on EUR/USD including the ADP, private payrolls, on Wednesday and then the main US release on Friday with non-farm payrolls.

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