The AUDUSD is the biggest mover against the U.S. dollar today, falling -1.05% to 0.6926. The decline has taken out several key technical levels and shifted the near-term bias firmly in favor of the sellers.
The day began with the pair testing the 61.8% retracement level at 0.7002. Sellers leaned against that resistance area, keeping the downside pressure intact.
The subsequent move lower targeted a key swing area between 0.6962 and 0.6978, defined by several swing highs and lows dating back to early April and retested on June 11. Buyers failed to defend that support zone, opening the door for an acceleration to the downside.
After reaching an intraday low near 0.6942, the pair attempted a modest rebound but was unable to reclaim the bottom of the broken swing area at 0.6962. That failure kept sellers firmly in control and paved the way for another leg lower.
The AUDUSD has now fallen to 0.6926, where it is testing a lower channel trendline. A decisive break below that support level would likely trigger additional downside momentum, with little in the way of significant support and increasing risk of an extended bearish move.
US stocks continue to be under pressure with the NASDAQ down -1.95% in the S&P down -1.28% and that in turn is leading to the risk-off sentiment in currency pairs like the NZDUSD and the AUDUSD.
