Monday low is the next target
The AUDUSD is trading at day lows and looks toward the low from Monday as the next target (at 0.7033). That move on Monday was quick. In fact the pair made the low and closed that 5 minute bar at 0.7136. The subsequent low could only get to 0.7102.
Today, the price decline stalled around that 0.7102 area for around 30 minutes before tumbling to the new lows. The 38.2% of the last leg lower comes in at 0.7101. This reinforces this area as a line in the sand for shorts (risk defining level) . It will need to be re-broken on any correction from here, to give buyer more control.
On the downside, looking at the daily chart below, the low stalled at the lower trend line (at 0.7033). That low and the lower trend line (now at 0.7015) are the next targets. A move below that, and the pair will be trading at new low levels since April 2009. One would expect 0.7000 would provide some natural support. In
