Trades to new session lows
The AUDUSD has been stuck in an up and down chop (see post from Friday). The upper extreme range started at 0.7324 and extended to 0.7344 (see green and red numbered circles). The lower extreme range ranged from 0.7246 to 0.7258 (see blue numbered circles
Today, the pair opened and based near the 200 hour MA (green line) and moved higher. That move higher found sellers near the low of the upper extreme at 0.7324. The price moved below the 100 and 200 hour MAs (200 hour MA is at 0.7290), and the rout to the downside was on. The price low has just reached 0.71993 (just below the natural 0.7200 level). The move has also extended below swing lows from September 4, September 8 and September 9 between 0.7210 and 0.72214. That is now close risk for sellers. Stay below is more bearish.
On the downside a move below the September 9 low at 0.71917 would increase the bearish bias.
Drilling to the daily chart, the pair is still near its recent highs. The March 2020 low was well down at 0.5511. The high price from early September 0.74128. That was a big move to the upside.
Today, the price fell below a trendline on the daily chart below at 0.7243. That is now a risk level on the daily chart. If the sellers are to remain in control staying below that level would also be eyed by market traders
The next downside target on the daily chart comes in at the September low at 0.71917. Below that opens the door for further selling with August lows of 0.7108 and 0.70758 as targets. The 38.2% retracement of the move up from the May low comes in at 0.70153. It's 100 day moving average is at 0.69811. If risk off trading resumes, those levels would be in play.
