The Australian dollar is certainly suffering from the fresh US dollar storm. After a temporary escape from the downtrend channel earlier in the week, AUD/USD quickly returned, and is digging deeper in the downtrend channel.
The growing prospects of a Greek exit from the euro-zone push the “safe haven†greenback higher across the board. As a “risk currencyâ€, the Aussie enjoys no mercy.
AUD USD Tumbling in Channel – Click to Enlarge
The trigger for the recent fall was a better than expected New Home Sales report in the US. It sent EUR/USD to a 22 month low.
Downtrend resistance began taking form earlier in the month, and was mentioned here. It was temporarily broken on some consolidation. Downtrend support took form a bit later and was successfully tested since then.
The pair is currently in the middle of the channel, at 0.9727, getting further away from parity. Critical support is at 0.9667 – this was an outstanding trough at the end of November. AUD/USD still has some breathing room before tackling this line.
For more, see the AUDUSD forecast.
