EUR Trading Outlook (25-02-2014)

AUD/USD: AUD/USD rallied to 200 DMA and showed no sign of weakness. The recent daily candles occured ahead of the daily cloud base, 21 DMA and 0.8905/25 support zone. Major resistance is still at 0.9080-90, a break would lead bulls eyeing 0.9205/25.

EUR/USD: EUR/USD dipped below the 200 hour MA hit a low of 1.3708. Bulls are still holding up as the pair is still above 10DMA but looking a bit weak. Range trade still in play 1.37/1.3775, no major news event from EZ until Friday so range should hold but if CPI comes in weak, then bears could come back strong as ECB will act to fend off low inflation.

GBP/USD: Option interest and Vodafone merger activities holds cable in 1.6585/1.6685 range. GBP is more likely to benefit from crosses as increased sentiment of the ECB moving shortly to institute further accommodation to help stimulate the EZ economies.