EUR Trading Outlook (27-03-2014)

AUD/USD: For now, bulls hold the reigns as the pair closed above 200 DMA for the second consecutive day, holding above the 50% Fib of 0.9758-0.8660 and day/week RSI provide positive momentum. Bulls may have their sight set on 0.9445/50 (late Nov high).

EUR/USD: The 21 DMA capped any overnight rally and widening yield spreads weighed on the pair for Europe’s morning. A quick spike in NY session as traders bought the dip in 1.3770/80 area to 1.3810 but did not make further gains. Choppy action in broad 1.3750-1.3900 range should hold as little data due until Friday German March CPI report. A weak result will once again increase bets on ECB to act.