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Australian dollar tumbling down – challenging critical support

AUD/USD is falling down. After weakening but holding on to 0.91, it made a sharp move to bottom out at 0.9038, just above the multi-year low of 0.9036. This area was a double bottom, and could turn into a triple bottom. Or perhaps, could we see a break down?

Update: AUD/USD falls below 0.9036 and it is at a new multi-year low.

Update 2: AUD/USD dips below 0.90 to 0.8998 before bouncing back up.

AUD USD Triple bottom July 12 2013 technical view for currency trading foreign exchange

The chart clearly shows the move to the triple support. The first move was on July 3rd, the second was on July 8th and here we are with a third one.

So far, the pair has bounced. Will the US data provide the necessary push lower? Update: the pair broke down and the new low so far is 0.9022. The breakdown is not confirmed yet.

It’s important to note that the fall of the Aussie is not related to USD strength at the moment. Yes, the US dollar continues recovering from Bernanke’s blow, but the fall of the Aussie is sharper than any other currency.

The Aussie is breaking down to new multi-year lows against its commodity currency peers: AUD/NZD and AUD/CAD are below previous lows.

AUD/CAD slipped below 0.94, the lowest since September 2010. AUD/NZD is under 1.16, the lowest since November 2008.

For more lines, events and analysis, see the AUDUSD forecast.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.