AUDUSD and Dow Channel Could Ward Off EURUSD Collapse...Temporarily
EURUSD took the extraordinary step of closing below the midpoint of its historic range Monday. And perhaps more important to ensuring conviction, this transition was made under a slew of disturbing fundamental headlines and alongside risk trends. In fact, comparing the size of the moves, the more traditional risk measures (Aussie dollar, US equities, etc) posted larger overall declines than the Euro itself. Yet, where EURUSD marked a critical technical break; AUDUSD and the Dow Jones Industrial Average both held meaningful technical support. Was this a move that simply traded back into range or is it a definitive change in risk? We will find out soon.