USD Trading Outlook (29-08-2014)

AUD/USD Europe added to the gains brought on by Oz CAPEX. Bulls managed to hit a new s-t trend high of 0.9374 but couldn’t breach the TL off the April 2013 high or the high from August 6th. The headlines from the Ukraine/Russia situations hit risk hard and the USD got a safe haven bid. Most of the Oz data gains were erased as the pair hit 0.9341. Risk made a bit of a comeback though and the pair sat near 0.9355 late in the day. Recent longs may have some concerns as the pair did breach the daily cloud base and 55-DMA but couldn’t hold the gains. The long-term TL is also tempering the rally. It appears as though the market needs to clear the daily cloud top and daily highs near 0.9410/15 to initiate a serious rally for this pair.