EUR Trading Outlook (28-02-2014)

AUD/USD: Hourly resistance near 0.8970/75 and next level at 0.90. Overall sentiment is still a downtrend but due to USD weakness, we could see further range trading sessions from this pair. A break of 0.8880/0.89 would create second push for the pair.

EUR/USD: The pair was crushed near 1.3695 to a low of 1.3640 as tensions in the Crimea increased. However, Yellen’s testimony was relatively dovish, which pushed the pair up, hitting intra-day stops above 1.3695/00 and a high of 1.3727 (200 hour MA). EZ inflation data today, a soft outcome may push EUR/USD below the daily cloud and 100 DMA as market will expect ECB to take some action on the deflation.