EUR Trading Outlook (11-04-2014)

AUD/USD: While the long term trend is bullish and short term warnings are extant. The rally stalled at the base of the weekly cloud, daily RSI is deeply overbought and retail accounts (contrarian) short positions have been reduced. Spread widening has stalled as well. A pullback for the pair may be in order. Decent support sits in the 0.9300/20 & 0.9205/25 zones.

EUR/USD: The pair slipped from high of 1.3875 to 1.3854 as USD/JPY tried to rally back above 102 after a better than expected jobless claim. However, the market did not further react to this data and had their eyes on the heavy bond yields and bearish USD sentiment returned again. Bulls pushed the pair through 76.4 Fib of 1.3967-1.3672 and hit a high of 1.3900 before profit taking kicked in. Daily & Weekly RSIs remain biased up, if 1.3900-20 area fully breaks then its more likely bulls retest 1.4000 level.