EUR Trading Outlook (24-04-2014)

The AUD: With current short term high being set (0.9460) and a disappointing CPI data, bears could use this opportunity to try and push the pair lower. Current pivot point at 0.9250 and resistances comes in at 0.9315 and 0.9350.

EUR/USD: A relatively better than f/c EZ PMIs, the rally for the pair began to a high of 1.3855. However, the pair was unable to break the resistance of 1.3860-65 regions and slid back to 1.3840 as NY opened. NY session continued to pressure the pair to technical support in the 1.3820/25 zone. The 200 hour MA and the 50% Fib of 1.3785-1.3855 sat in that zone and were tested just before the US housing data was released. ECB Nowotny stated that it wouldn’t rule out QE program to buy sovereign bonds but the time for QE action shouldn’t be taken before June. Market now awaits for ECB Draghi’s statement.