EUR Trading Outlook (20-05-2014)

AUD/USD: Should NY’s slide continue overnight, stop touted under 0.9320 and 0.9290 may get run. If the latter are run key 0.9200/05 support is targeted.

EUR/USD: No fresh lows were seen and NY lifted the pair towards 1.3730 but comments from ECB’s Mersch gave a quick smack down. Mersch stated the likelihood ECB’s GC will act in June has grown substantially while also noting the GC’s unanimous willingness to use conventional & unconventional tools to counter low inflation risks. EUR dived to 1.3700 are and was bought on the dip. A new session high of 1.3734 was hit but offers sitting ahead of the 100 DMA capped. Short covering may limit the downside while the daily cloud top & 50% fib of 1.3995-1.3648 may cap gains.