USD Trading Outlook (06-11-2014)

AUD/USD Broad based USD strength saw Europe add to losses begun in Asia. Bears pushed AUD/USD from the 0.8720 area towards 0.8610 as NY got going. An early lift towards old support/now resistance near 0.8640 was thwarted as the USD remained firm and commodities couldn’t mount any comeback. AUD/USD broke below the 0.8600 barrier, ran stops and quickly hit a low of 0.8565. A lift back near 0.8600 found sellers and the pair sat just below 0.8575 late in the day. Traders now turn their focus to the Oz Oct jobs report. Should a weak result be printed it’s likely further losses are due. As it stands now the technical picture is growing bearish. The pair has cleanly broken below the 38.2 Fib of 0.4775-1.1081, day /week RSIs provide bear momentum and a bearish outside candle formed today. Should the bear trend persists the May 2010 low near 0.8065 will be a major bear target.