AUDUSD tumbles lower but finds some support near yesterday’s low

The AUDUSD started the New York session as one of the strongest of the major currencies. At the highs the pair tested the 38.2% at 0.69537, but found sellers. The bullish fortunes reversed with the price moving back below the 100 and 200 hour MA (blue and green lines) That increased the selling and the selling did not stop until reaching toward the lows from yesterday at 0.68409. The low price reached 0.6844 just ahead of that level.

Helping the run to the downside was a sharp reversal in stocks They are down for the 3rd day in a row. Yields also started to move back to the upside after trading lower earlier.

Going into the new day a move below 0.68409 would increase the bearish bias and open the door for further downside momentum. Watch the 0.6858 level on the topside as a close barometer for bullish or bearish. If the recent move to the downside cannot stay below that level for an extended time. We could see a rotation back to the upside with 0.6870 and 0.68847 has next upside targets to get to and through.