ForexLive European morning wrap – Key levels targetted but holding so far…

EURUSD tests 1.3320-25 support again as EURJPY falls to test key 124.50 GBPUSD finds a mix of buyers to challenge offers above 1.5500 but fails to breach again German ZEW economic sentiment sharply high at + 48.2 in Feb versus 31.5 in Jan Eurozone Contruction Ouput falls 1.7% mm 4.8% yy What started out as a quiet session turned lively again very quickly just as I posted  " its all gone quiet " in time honoured ForexLive tradition. EURJPY  fell rapidly through support at 125.00 as Middle East names targetted the stops just below and succeeded, driving the pair lower to 124.75 before a small bounce. EURUSD of course came down rapidly with it and tested yesterday's lows around 1.3325, but the subsequent rally was weak and EURJPY got closer to the magnet that is 124.50, hitting lows of 124.55 before bouncing again In the meantime GBPUSD saw a test of the reported offers above 1.5500 again after concerted buying from  a combination of Middle East names ( again ) and a UK clearer buying for  UK insurance company repatriating funds from the US. Throw in a brief cocktail of much better than expected German ZEW sentiment,  worse EZ construction output, and an array of sell orders,  and we spent the next couple of hours  of up and down in ever tightening ranges as EURJPY rebounded to 125.26 and EURUSD to 1.3374 before running out of steam  and heading back lower  along with GBPUSD, where we've sat for almost 2 hours now. Let's see what the US make of it all upon their return to the fray.