The dollar storm continues in the markets, and is now at a pause. Is this a short pause or a change? It seems more like a short one. The two commodity currencies continue their previous trends.
AUD USD Downtrend Channel - Click image to enlarge
AUD/USD gradually moves lower, respecting the downtrend channel. Once again, it is in the middle of the range after reaching a low of 0.9870.
Aussie/USD used to top the list of most predictable currency pairs, but the lower volatility hurt it. It seems back in shape now.
USD/CAD got close to resistance after breaking to a three month high. Also this pair, which is usually more choppy, has a better technical behavior at the moment.
The pair reached a peak of 1.0132, 11 pips short of resistance at 1.0143. Falling oil prices also weigh on the pair.
USD/CAD Continues Rise, Falls Short of Resistance - Click image to enlarge
All in all, this heightened volatility is making forex trading more attractive in recent weeks, after a period of frustrating range trading in certain pairs.
The main reason is the deterioration in Greece: after coalition talks failed, it was revealed that significant withdrawals are being made from banks, accelerating the “bank jog”. This could turn into a bank run sooner than later.
In addition, Greeks also defer paying taxes due to the election results. This doesn’t leave much in the state’s coffers.
The fear for the global economy is huge, and this drives the US dollar higher across the board.
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