AUD/USD 1H Chart: Channel Down

This 350-bar long pattern was initiated after AUD/USD reached a peak of 0.9760 on Oct 23. Since then the currency pair has plunged more than four figures and appears to be capable of moving even lower. Before resuming the down-trend, however, there is a good chance that the Aussie will first test a down-trend resistance at 0.9398, but should fail to advance beyond it, especially considering that the line currently coincides with the 200-hour SMA. Nevertheless, an overwhelming majority of SWFX market participants do not believe the decline will persist for a prolonged period of time—70% of them at the moment are long on AUD/USD.