EUR/USD Outlook - The EUR/USD now finds itself at a critical turning point. Going into the first quarter of 2007, we had said that the divergent growth and divergent interest rates policies of the US and the Eurozone would be the number one driver of EUR/USD price action in the first three months of the year. Looking back at the charts, we see that the EUR/USD is up 200 points since January 1st, but a closer look at the price action during the quarter reveals that the currency pair saw a far more impressive 500 pip rebound after hitting a low of 1.2944 on January 12th. The dollar�s rally at the beginning of the year was triggered by solid data from the manufacturing and service sectors and the labor market.. However as the EUR/USD consolidated for the rest of January into the beginning of February, evidence of US economic weakness began to emerge. The problems in the US sub prime lending sector exacerbated worries of an oncoming recession triggering the EUR/USD�s ascent to a fresh 2 year high. Full EUR/USD Outlook