Trades at lowest level since September 2

The AUDUSD has stepped lower today, and cracked through levels that increased the bearish bias.

Trades at lowest level since September 2

At the highs, the pair did not crack below a level but rather stayed below a ceiling (which was a floor earlier in September - see red circles). Sellers leaned and pushed the price lower.

Next, when the price fell below the 100 hour MA, the sellers added on (see blue line in the chart above).

In the current bar the price fell below the low from last Friday at 0.6796.

We are now looking to fall below another swing level at the 0.67523. That opens more of a downside door. Close risk is a move back above the 0.6760 area. More conservative risk is the 100 hour MA.

On the downside, the low for September reached 0.6687. That is near lows from August at 0.66767 and 0.66887. Above those levels, there was a swing low at 0.6734. Those are the key targets on more selling.

AUDUSD on the daily chart