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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 currency”, the Aussie enjoys no mercy.

AUD USD Tumbling in Channel May 23 2012
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.