USD Trading Outlook (19-02-2015)

AUD/USD Europe dumped the pair after offers in the 0.7830/50 zone proved too chunky. The slide saw the pair near 0.7800 as NY got going. NY applied bear pressure as well as US bond yield added to gains from yesterday. AUD/USD steadily slipped lower in NY and pierced the 10-Day MA. A low of 0.7774 was then hit but no further losses were possible. The pair lingered near the low into the Fed minutes. The dovish lean had the USD offered across the board. AUD/USD spiked up, pierced the 21-Day MA and hit a high of 0.7840. Very little pullback was seen and the pair lingered near the high late in the day. There is no Oz data to drive the pair in Asia so external factors will be leading. Further deterioration in US yields likely see the key 0.7880/0.7910 resistance zone tested. A break likely leads to a decent short squeeze.