EUR Trading Outlook (22-05-2014)

AUD/USD: The trend remains down but support into 0.9200 looks tough for now. A long lower wick on the daily candle is in place to suggest recent losses may need to consolidate before 0.9200 breaks.

EUR/USD: EUR made another attempt into 1.3730/40 resistance on the drop of USD/JPY to 100.80 area. Rebound on US yield then added pressure to EUR and the pair dived towards 1.3655. As Europe closed, the pair then went on a stop loss hunt, the EUR took a quick dive to the 200-DMA. Short covering started as we were close to the recent low and also a slid on US yield which pushed the pair towards 1.3680-90 area. EZ PMIs are due today, soft reading may see 200 DMA retested.

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