EUR Trading Outlook (27-02-2014)

AUD/USD: The local bids were filled, the 21 DMA (0.8947) broke and a low of 0.8944 was hit. AUD is more likely to remain heavy, key support 0.8905/25 may be tested & cleared if data comes in poor. Below 0.8905 opens tests of 50% and 61.8% Fibs of 0.8660-0.9081 which sit 0.8871 and 0.8821 respectively.

EUR/USD: The 200 hour MA which had supported EUR/USD well through February. Once cleared the slide accelerated. End of month, USD buying from corporates added pressure on it, hitting a low of 1.3662. Bear are gaining confidence as daily RSI turned down and yield spread weigh 1.3625/55 (cloud top & base, 21 & 100 DMAs in the next hurdle). If this breaks, the rally may end and 1.3475/80 may be tested.