EUR Trading Outlook (14-04-2014)

AUD/USD: Thursday’s shooting star candle saw downside follow through today and the daily RSI begin to roll over from overbought territory. Last week’s rally stalled at the base of the weekly cloud. These signals may mean a s-t pullback for the pair is needed.

EUR/USD: Last week, EUR/USD managed to push to a high of 1.3906, however, the rally faded as JPY strength pushed EUR/JPY from 131.56 towards 140.65. In the weekend, ECB stated that the stronger the EUR the greater the need for monetary action. A doji formed on the daily chart and it occurred at the 76.4 Fib of 1.3967-1.3672. At the same time daily RSI hasn’t confirmed the new trend high. A pullback for the pair may be due. Good support sits in 1.3805/20 area, bulls remain in charge above that level.