USD Trading Outlook (11-07-2014)

AUD/USD Europe added to losses from Asia as concerns about EZ banks had risk assets trading heavy. Bears pushed the pair to hourly support near 0.9355/60 and the pair sat just above that level as NY got going. It looked as if another run at the support would take hold in NY as US bond yields sank and JPY was bid across the board on safe haven bets. AUD/USD managed to hold above the 0.9361 low though. The pair then began a slow ascent after US stocks opened near their lows and steadily climbed while US bond yield took back much of their earlier losses. AUD/USD test s-t resistance ahead of the 200-HMA (0.9400) and hit a NY high of 0.9394. It sat near that level late in the day to leave the pair down near 0.25% on the day. Techs are flashing some warnings for recent longs. Daily RSI turns lower again, a bearish engulfing candle is in place on daily charts and a long upper wick forms on the weekly candle. With risk aversion upped we may see recent longs unwind going into the weekend. A test of key support in the 0.9320/40 zone may take hold. If that breaks the 200-DMA is the next bear target.