USD Trading Outlook (13-11-2014)

AUD/USD The pair saw a steady ascent in Europe as the USD and US bond yields were on the soft side. A rally from the 0.8685 area took hold and 0.8730 was approached. The pair then dipped towards 0.8705 into NY’s open. The dip found buyers and the ascent resumed. Buying increased as a wave of USD sales entered the market in Europe’s close. AUD/USD cleared hourly resistance near 0.8735, pierced the 21-DMA and neared 0.8745/50. Little pullback was seen as shorts may be looking to cover still with techs suggesting the squeeze has further to run. Daily RSI is biased up and the pair is holding nicely above the 10-DMA. A hold above the 21-DMA targets 0.8765/70 resistance (series of daily lows/highs, 61.8 Fib of 0.8912-0.8540). A break eyes the October high. If that’s cleared a s-t bottom might be in place.