EUR Trading Outlook (19-05-2014)

AUD/USD: The trend remains up as spreads widen a bit and day/week RSI remain biased up. The weekly doji occurring at the weekly cloud base & TL off October’s high does suggest some indecision though. A clean break & hold above the tech resistance should reignite the l-t rally. A break of 1.4555/65 support is EUR/AUD may help push AUD to a new high trend.

EUR/USD: Short covering rallies have been limited. Offers ahead of the 100-DMA (1.3740) conspired with the daily cloud base & 23.6Fib of 1.3995-1.3648 to keep the day’s high limited to 1.3727. EUR/JPY failed to break above 139.45/50 resistance initiated a slide and took EUR/USD with it. For now, range trading still in play, market awaits for Buba’s speech and Thursday’s Manufacturing and services PMI. A soft reading may encourage bears to push towards 200-DMA (1.3628).