USD Trading Outlook (27-02-2015)

AUD/USD The pair defied narrowing yield spreads in Europe and the pair’s post-CAPEX bounce set a new s-t trend high. The pair hit a high of 0.7914 which the bear flag top. The pair began sliding as the USD put in a solid rally. NY walked in with the pair near 0.7890. The USD’s lift got a boost after durable goods results were solid. US bond yields lifted and took the USD with them. AUD/USD’s slide intensified and ran s-t stops through 0.7835/40. The drop persisted through NY’s session and late in the day the pair was threatening to close below the 21-DMA. Bear signals are upped after daily RSI diverged on the new s-t high and a bearish engulfing candle formed. A test of key support near 0.7720/40 looks likely. A break there puts the 2015 low in play. Another round of solid data from the US tomorrow might see that support cleared.