Search ForexCrunch

The Fed not only tapered QE by another $10 billion for the third time, but also leaned to the hawkish side with the projections and at Yellen’s press conference. This helped the US dollar across the board and the Aussie was certainly unable to withstand the storm.

AUD/USD fell 100 pips in an almost straight line, losing two support levels and heading towards the all important support line of 0.90. Here is how a nose dive looks like:

Update:  AUD/USD loses 0.90 on second wave of the Yellen effect

AUDUSD free falls March 19 2014 technical forex 30 minute chart for Aussie reaction on Yellen first decision

Support below 0.90 is found at 0.8910. Resistance is at 0.9060 and then 0.91.For more lines, events and analysis, see the AUDUSD forecast.

The Aussie enjoyed a nice rally following the better than expected employment numbers released last week. A$ already seemed to detach itself from worries about Chinese growth and lean towards the domestic economy.

The Australian economy strengthened in part to the weaker currency, and could now benefit from this fall of AUD.

Analysis:  5 reasons for USD rally on the Fed decision