EUR Trading Outlook (24-03-2014)

AUD/USD: Chances of a rally back to the 200 DMA & TL off April’s high increase as the March 20 doji sees upside follow through today. Day/Week RSIs resume bullish pressure and spreads remain at recent wides.

EUR/USD: Sell off started since last week, hourly supports were bought but topside rallies were limited by the 21-DMA and old bull channel base. Asian names with resting offers 1.3810/20 aided to cap the pair. Bearish sentiment seems to be still growing as the break below the 21-DMA bull channel off February’s bearish outlook. EZ PMIs will be out today, soft reading on the data would confirm the bearish technical outlook and could test the pair to 1.3685/1.3710 support levels.