The AUDUSD noticed sturdy shopping for yesterday on “Danger on” sentiment after the FOMC resolution. The worth moved above the 38.2% retracement of the final transfer down on the swing excessive at 0.71929. The worth additionally prolonged above the excessive from April 26 at 0.7227 and the 50% midpoint of the identical transfer down from April 26 at 0.72434.
The AUDUSD did run into resistance yesterday proper close to its 100 day shifting common at 0.72603. The excessive worth yesterday reached 0.72637. The excessive worth at this time reached 0.72656. Small breaks however not a lot momentum.
At the moment, sellers took the clue from the 100 day shifting common resistance, and began to lean/appropriate extra to the draw back. The GBPUSDs tumble and continued promoting on the again of falling US equities (and rising charges) has now taken the AUDUSD pair again all the way down to the 200 hour shifting common at 0.71313 (inexperienced line within the chart above). The 100 hour shifting common is available in at 0.71183 (blue line within the chart above).
There could also be some dip patrons towards these shifting averages as danger may be outlined and restricted. Nevertheless, merchants are heading for the exits in equities. In consequence, if the worth begins to commerce under the 200 hour shifting common after which at 100 hour shifting common, I might anticipate the promoting to proceed.
It is exhausting to catch a falling knife. The knife is falling.
The NASDAQ is now down -481 factors or -3.71%. The S&P is down -108 factors or -2.5%. 10 yr yields are up 13.1 foundation factors to three.0464%. A brand new cycle excessive for that tenor.