AUDUSD Decline is a Correction
Current Price: .8450
Key Levels:
The rally sequence from the 6/28/2006 low does not look complete. The decline from .8870 is most likely wave 4 within the 5 wave rally that began on 6/28/2006. Wave 4 may be over since wave c of 4 is 61.8% of wave a of 4. A more common relationship though is where waves a and c are equal. This would occur at .8235. .8162 is wave four of one less degree, which is also potential support. A decline much below there negates the idea that the Aussie is heading higher. We are looking for wave 5 to exceed .8870.
The hourly chart shows wave 4, which is an a-b-c correction (so far). As mentioned, the decline may be over. A break above the wave B high at .8662 would make it highly likely that wave 5 was in progress.
[B]Written by Jamie Saettele, Technical Currency Strategist[/B]